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प्रश्न
Study the following case/situation and express your opinion :
The Board of Directors of STAR Co. Ltd. which is a listed company recommends a dividend of ₹ 15/- per share to be paid in cash.
- Is it justified to pay the dividend firstly to its Preference Shareholders and then after to Equity Shareholders?
- Is the AGM required to approve the same?
- Can the company pay dividend in cash?
उत्तर
- Yes, it is justified to pay the Preference shareholders first and then the Equity Shareholders. Preference shareholders are entitled to dividends before it is paid to the equity shareholders as per the terms of the issue of preference shares. Equity shareholders will get dividends from residual profits. i.e. after paying to preference shareholders.
- Yes, AGM is required to approve the dividend. The dividend, as recommended by the Board of Directors, is approved and declared by a resolution passed at the Annual General Meeting by the shareholders.
- Dividend payable in cash should be paid by cheque or warrant or by electronic mode to the entitled shareholder.
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संबंधित प्रश्न
Write a word or a term or a phrase which can substitute the following statement.
Request by shareholder in prescribed form for payment of dividend into shareholders bank amount.
Dividend once declared cannot be revoked.
State whether the following statement is true or false.
All categories of shareholders get a fixed rate dividend.
Complete the sentence.
Dividend can be declared only on recommendation of______.
Complete the sentence.
The meeting at which final dividend is approved is ______.
Select the suitable option for the following.
Preference Shares ____________.
Correct the underlined word and rewrite the following sentence.
Dividend must be paid within 60 days of its declaration.
Correct the underlined word and rewrite the following sentence.
Preference shareholders are given the last priority in payment of dividend.
Correct the underlined word and rewrite the following sentence.
Preference shareholders get dividends from residual profits.
Arrange in Proper Order:
- Closure of Register of Members.
- Intimate Stock Exchange of Board Meeting.
- Intimate Stock Exchange of declaration of dividend.
Study the following case/situation and express your opinion:
GOLD Co. Ltd. declares a dividend of ₹ 10/- per share for F.Y. 2018-19.
- Is company under default, if the dividend was not paid within 30 days of its declaration?
- Is company right in transferring the unpaid dividend to its Debenture Reserve Account?
- Does the company have to transfer the amount of unpaid dividends to IEPF after 30 days?
Answer the following question.
Discuss legal provisions for declaration of dividend.
Dividends can be paid out of capital.
Explain the following term/concept in detail:
Listed Company
Study the following case/situation and express your opinion:
GOLD Co. Ltd. declares a dividend of ₹ 10/- per share for F.Y. 2019-20.
- Is the company under default, if the dividend was not paid within 30 days of its declaration?
- Is the company right in transferring the unpaid dividend to its Debenture Reserve Account?
- Does the company have to transfer the amount of unpaid dividends to IEPF after 30 days?
