Non Cumulative preference shares
1. Non-Cumulative Preference Shares: Non-Cumulative preference shares are
entitled to a fixed rate of dividend in the first instance (i,e., beforeanything is
given to other types of shareholders). But they are entitled to receivethe fixed
percentage of dividend in the first instance only for the year oryears when the
company earns sufficient profits and dividend is declared. Incase the company
has no or inadequate profits in any year to declare dividend,then, the arrears
of dividend do not accumulate and become payable out offuture profits in the case of these shares.