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प्रश्न
Study the following case/situation and express your opinion :
LMN Co Limited decides to declare a dividend for the financial year 2018-19 in which it has earned profits less than their expectations.
- Is Board right in recommending a dividend of Rs. 5/- per share out of free reserves?
- Can Board declare the dividend though it is not approved by AGM?
- Can the Board give dividends in the form of gifts?
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उत्तर
- Yes, the Board can recommend a dividend of Rs. 5/- per share out of free reserves. This is because companies are allowed to pay final dividend out of their free reserves.
- No, the Board cannot declare the dividend without shareholders’ approval at the AGM. The dividend, as recommended by the Board of Directors, is approved and declared by a resolution passed at the Annual General Meeting by the shareholders.
- No, the Board cannot give dividends in the form of gifts. This is because dividends must be paid in cash and not in kind.
APPEARS IN
संबंधित प्रश्न
Final Dividend is declared by ______.
Dividend cannot be declared out of ______________.
Dividend is recommended by ______________.
______ holders get dividend from residual profits.
Select the correct answer from the options given below and rewrite the statement.
___________ is not linked to profits of the company
Match the pairs.
| Group ‘A’ | Group ‘B’ |
| a) Dividend | 1) Must inform stock exchange about Dividend declaration |
| b) Interest | 2) Creditors |
| c) IEPF | 3) Registered Shareholders. |
| d) Unpaid Dividend Account | 4) Balance of unpaid Dividend Transferred here. |
| e) Listed Company | 5) Unregistered company. |
| 6) Non-listed company. | |
| 7) Unpaid/Unclaimed Dividend. | |
| 8) Balance of unpaid Bonus transferred here. | |
| 9) Must inform Government about Dividend declaration. | |
| 10) General Public. |
Write a word or a term or a phrase which can substitute the following statement.
The meeting where the final dividend is declared.
Write a word or a term or a phrase which can substitute the following statement.
The shareholders who get dividend at a fluctuating rate.
State whether the following statement is true or false.
Dividend is decided by the Board.
State whether the following statement is true or false.
Dividend is decided by the shareholders.
Complete the sentence.
Word dividend is derived from Latin term ______.
Answer in one sentence.
What is Dividend?
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Dividendum | 1) ____________ |
| b) Interest | 2) ____________ |
| c) ____________ | 3) Final Dividend |
| d) ____________ | 4) Interim Dividend |
| e) Govt. Fund | 5) ____________ |
(Creditors, IEPF, Latin term, At Board Meeting, At AGM)
Correct the underlined word and rewrite the following sentence.
Special Resolution must be passed to declare Final Dividend
Explain the following term/concept.
Profit
Explain the following term/concept.
Rate of Dividend.
