https://www.taxtmi.com/caselaws?id=99163 Cumulative preference shareholders are entitled to arrears of fixed dividends in winding-up where the articles expressly grant repayment of capital and unpaid dividends, whether earned, declared or not, in priority to equity shareholders. The articles bind the company and members, subject to the Companies Act. Dividend-payment restrictions requiring profits and declaration apply while the company is a going concern, whereas winding-up distribution follows members' rights under the articles. The distinction between ongoing operations and liquidation supports payment of cumulative dividend arrears from company assets during winding-up. en-us Mon, 25 Nov 1974 00:00:00 +0530 Wed, 25 Jan 2012 13:35:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99163 Cumulative preference shareholders are entitled to arrears of fixed dividends in winding-up where the articles expressly grant repayment of capital and unpaid dividends, whether earned, declared or not, in priority to equity shareholders. The articles bind the company and members, subject to the Companies Act. Dividend-payment restrictions requiring profits and declaration apply while the company is a going concern, whereas winding-up distribution follows members' rights under the articles. The distinction between ongoing operations and liquidation supports payment of cumulative dividend arrears from company assets during winding-up. Case-Laws Companies Law Mon, 25 Nov 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99163