cumulative preference share(A type of preference share that entitles the owner to receive any dividends not paid in previous years. Companies are not obliged to pay dividends on preference shares if there are insufficient earnings in any particular year. Cumulative preference shares guarantee the eventual payment of these dividends in arrears before the payment of dividends on ordinary shares, provided that the company returns to profit in subsequent years. If the dividends are in arrears, then shareholders may have some rights as ordinary shareholders. OF&B Alexander Demidov)
