Act Number: 63

Act Name: The Preference Shares (Regulation of Dividends) Act, 1960

Year: 1960

Enactment Date: 1960-12-28

Long Title: An Act to regulate dividends on preference shares of certain companies.

Ministry: Ministry of Corporate Affairs

Department:

Section 2: Definitions.
    In this Act, unless the context otherwise requires,--
         (a) "Companies Act," means the Companies Act, 1956 (1 of 1956);
         (b) "company" means an Indian company as defined in 2[clause (26) of section 2 of the Incometax Act, 1961 (43 of 1961) and includes a company referred to in sub-clause (ii) of clause (17)] of the said section which has made arrangements for the declaration and payment of dividends within Indian in accordance with the rules made under the said Act;
         (c) "preference share" means a share which 3*** carries, as respects dividends, a preferential right to be paid a fixed amount or an amount calculated at a fixed rate;
         (d) "previous year" has the same meaning as in the 4[Income-tax Act, 1961 (43 of 1961)];
         (e) "stipulated dividend", in relation to a preference share, means the fixed amount or the amount calculated at fixed rate which the holder of such share has a preferential right to be paid as dividend;
         (f) all other word and expressions used but not defined in this Act and defined in the Companies Act shall have the meanings respectively assigned to them in that Act.
Notes:
1. Subs. by Act 10 of 1965, s. 72, for "clause (7A) of section 2 of the Indian Income-tax Act, 1922 and includes a company referred to in sub-clause (ii) of clause (5A)" (w.e.f. 1-4-1965).
2. The words, figures and letters "having been issued and subscribed for before the 1st day of April, 1960" omitted by s. 72, ibid. (w.e.f. 1-4-1965).
3. Subs. by s. 72, ibid., for "Indian Income-tax Act, 1922 (11 of 1922)" (w.e.f. 1-4-1965).
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