Unless the articles provide otherwise, how are the dividend rights of preference shares presumed to operate?

Correct answer: B) The fixed preference dividend is presumed to be cumulative, so unpaid arrears carry forward

Explanation

Preference shares carry a right to a fixed dividend in priority to ordinary shareholders, and this right is presumed to be cumulative unless stated otherwise. They are presumed not to participate further in surplus profits. No dividend can be paid on any shares unless the company has profits available for distribution.