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Question
Dividend once declared cannot be revoked.
Options
True
False
Solution
This statement is True.
Explanation:
Once a dividend is declared by the company’s Board of Directors and approved by the shareholders in the Annual General Meeting (AGM), it becomes a legal obligation and cannot be revoked. The company must pay the declared dividend to eligible shareholders within the prescribed time. Failure to do so can lead to legal consequences under company law.
RELATED QUESTIONS
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.
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Dividend is paid to registered shareholders of the company.
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Predecided and a fixed rate of dividend is paid to ______.
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Who has right to recommend Dividend?
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Govt. Fund ____________.
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Arrange in Proper Order:
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- Checking sufficiency of profits
- Board Meeting
Arrange in Proper Order:
- Closure of Register of Members.
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Study the following case/situation and express your opinion:
GOLD Co. Ltd. declares a dividend of ₹ 10/- per share for F.Y. 2018-19.
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Justify the following statement.
Listed Company has to follow additional guidelines on dividend matters.
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
