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Are preferential shareholders of Apex Company Limited entitled to further dividends after their declared dividends?
Question
A group of young members of Apex Company Limited petitioned the Board of Directors of the Company over dividends payments at the close of the company’s annual general meeting. They claimed that they were preferential shareholders and that after dividends were declared for them, they had the privilege for fair participation in the distribution of the remaining shares.
Required:
(a) From the above scenario, are the preferential shareholders entitled to any further dividend?
(b). State TWO (2) principles relating to minimum capital for a company limited by shares pursuant to provisions of the law.
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