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Question
Justify the following statement.
Listed Company has to follow additional guidelines on dividend matters.
Solution
A dividend is ‘a share in distributable profits of the company to which the shareholder is entitled when it is formally declared by the company.’ The Board of Directors have the right to recommend a dividend. Once the dividend is approved and declared by the shareholders, it becomes a debt and cannot be revoked by the company. The final Dividend is declared and paid after the close of the financial year. It is decided and recommended by the Board of Directors and declared by the shareholders in the AGM.
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Equity Shares ____________.
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- Checking sufficiency of profits
- Board Meeting
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IEPF
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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.
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Justify the following statement.
Equity shares get last priority in dividend.
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