https://www.taxtmi.com/caselaws?id=283068 Preference shareholders' contractual rights under the Articles of Association govern distribution on winding up, including repayment of capital and arrears of cumulative dividends in priority to equity shareholders. Article 7 permits payment of arrears whether earned, declared or not, up to commencement of winding up; this entitlement is not invalid merely because the company had not commenced business or earned profits. Where the prospectus uses narrower wording, the Articles prevail. The restriction on dividends otherwise than from profits applies to a going concern, while asset distribution in liquidation follows members' rights and interests under the Articles. en-us Fri, 16 Nov 1973 00:00:00 +0530 Thu, 05 Sep 2019 17:33:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283068 Preference shareholders' contractual rights under the Articles of Association govern distribution on winding up, including repayment of capital and arrears of cumulative dividends in priority to equity shareholders. Article 7 permits payment of arrears whether earned, declared or not, up to commencement of winding up; this entitlement is not invalid merely because the company had not commenced business or earned profits. Where the prospectus uses narrower wording, the Articles prevail. The restriction on dividends otherwise than from profits applies to a going concern, while asset distribution in liquidation follows members' rights and interests under the Articles. Case-Laws Companies Law Fri, 16 Nov 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283068