02-Oct-2022 01:57 PM
Once company declare dividend then it becomes an enforceable debt on the comapny, but if after declaration company goes into CIRP and it leads to winding up, will the declared dividend is considered as debt. If yes then it ranked above preference shareholders in waterfall arrangement (i.e any remaining debts and dues)
Considering the provisions of Companies Act, 2013 it appears that it will be considered as unsecured debt. But for confirming the same please check whether there is any case law on it.
Answer given by Shubhamm Sir at 15-Oct-2022 06:40 PM