If expected dividends are not paid to preferred shareholders,there is no right to sue although those unpaid dividends will accumulate.

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Quizplus · Accepted Answer

This is because preferred shareholders have a contractual right to receive dividends, but they do not have a right to sue the company for non-payment. However, if the company fails to pay dividends for a prolonged period of time, the cumulative unpaid amount may become a debt owed by the company to the preferred shareholders, which could give them the right to sue.

If Expected Dividends Are Not Paid to Preferred Shareholders,there Is