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प्रश्न
Dividend once declared cannot be revoked.
विकल्प
True
False
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उत्तर
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.
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.
State whether the following statement is true or false.
IEPF is the fund created by company.
Complete the sentence.
Dividend can be declared only on recommendation of______.
Complete the sentence.
The meeting at which final dividend is approved is ______.
Answer in one sentence.
Who has right to recommend Dividend?
Select the suitable option for the following.
Govt. Fund ____________.
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.
Correct the underlined word and rewrite the following sentence.
Dividend is payable every year, irrespective of the profits made by the company.
Arrange in Proper Order:
- Recommendation of Dividend
- Checking sufficiency of profits
- Board Meeting
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?
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?
Justify the following statement.
Equity shares get last priority in dividend.
Answer the following question.
Discuss legal provisions for declaration of dividend.
Arrange in Proper Order:
(a) Board Meeting
(b) Shareholder approval
(c) Board's Recommendations
