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Question
Justify the following statement.
AGM is crucial for Final Dividend.
Solution
- The final dividend is declared and paid after the close of the financial year.
- It is decided and recommended by the Board of Directors.
- Dividend as recommended by the Board of Directors is approved and declared by a resolution passed at the Annual General Meeting (AGM).
- The final dividend is declared by the shareholders in the AGM.
- Thus, AGM is crucial for the Final Dividend.
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RELATED QUESTIONS
Distinguish between the following:
Interim dividend and Final dividend.
Payment of __________ Dividend must be authorized by the Articles of Association.
Write a word or a term or a phrase which can substitute the following statement.
Dividend declared between two AGMs.
Write a word or a term or a phrase which can substitute the following statement.
Dividend decided and declared by the Board.
Complete the sentence.
Interim dividend is decided and declared by ______.
Complete the sentence.
Payment of Interim Dividend needs to be authorized by ______.
Answer in one sentence.
At which Meeting Interim Dividend is decided and declared?
Correct the underlined word and rewrite the following sentence.
Final Dividend is paid between two AGMs.
Arrange in Proper Order:
- Payment of Interim Dividend
- Board meeting deciding and declaring Interim Dividend.
- Authorization of Articles of Association.
Explain the following term/concept.
Interim Dividend
Study the following case/situation and express your opinion :
ABC Co. Ltd. decides to pay Interim Dividend
- Can it be paid out of free reserves?
- Is the Board right in declaring the same at the Board Meeting?
- Can the company distribute the same within 30 days of its declaration?
Study the following case/situation and express your opinion :
RAJ Company limited decides to pay Interim Dividend
- Is the Board justified to decide Interim Dividend of ₹ 5/per share even though profits till date are insufficient?
- Can the Board declare it out of Free Reserves?
- Can the Board declare it out of Capital?
Study the following case/situation and express your opinion :
DIAMOND Co. Ltd. is considering to declare Interim Dividend.
- In how many days of the declaration it should transfer the funds to Dividend Account?
- In how many days it must pay it to shareholders?
- In how many days of the declaration it must transfer the funds to the Unpaid Dividend A/c?
Justify the following statement.
Approval of members is not needed for Interim Dividend.
Explain Interim Dividend.
Diamond Company Limited is considering to declare Interim Divided:
- In how many days of declaration it should transfer the funds to Dividend Account?
- In how many days it must pay it to Shareholders?
- Can the Board of Directors declare Interim Dividend out of capital?
