https://www.taxtmi.com/caselaws?id=96774 The court ruled in favor of the liquidator, directing that surplus assets be utilized to repay preference shareholders' paid-up capital before distributing the remaining assets to ordinary shareholders. The judgment emphasized the distinction between dividends declared during the company's operation and entitlement to surplus assets in winding up. It highlighted the contractual rights of preference shareholders and underscored that arrears of preferential dividends are not considered debts until declared. The decision prioritized adherence to the company's Memorandum and Articles of Association in determining asset distribution, emphasizing contractual obligations over abstract notions of justice. en-us Wed, 11 May 1938 00:00:00 +0530 Wed, 11 Jan 2012 10:47:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96774 The court ruled in favor of the liquidator, directing that surplus assets be utilized to repay preference shareholders' paid-up capital before distributing the remaining assets to ordinary shareholders. The judgment emphasized the distinction between dividends declared during the company's operation and entitlement to surplus assets in winding up. It highlighted the contractual rights of preference shareholders and underscored that arrears of preferential dividends are not considered debts until declared. The decision prioritized adherence to the company's Memorandum and Articles of Association in determining asset distribution, emphasizing contractual obligations over abstract notions of justice. Case-Laws Companies Law Wed, 11 May 1938 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96774