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प्रश्न
Dividends can be paid out of capital.
विकल्प
True
False
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उत्तर
This statement is False.
Explanation:
Dividend is the return payable to the company's shareholders for their investment in the share capital. It is the portion of profits of the company paid to its shareholders. It is payable out of the earnings of the company. The dividend is an unconditional payment made by the company. Dividends must be paid in cash and not in kind.
APPEARS IN
संबंधित प्रश्न
State whether the following statement is true or false.
Dividend is paid to registered shareholders of the company.
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______.
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.
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:
- Closure of Register of Members.
- Intimate Stock Exchange of Board Meeting.
- Intimate Stock Exchange of declaration of dividend.
Explain the following term/concept.
IEPF
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?
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.
Arrange in Proper Order:
(a) Board Meeting
(b) Shareholder approval
(c) Board's Recommendations
Explain the following term/concept in detail:
Listed Company
