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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
Select the correct answer from the options given below and rewrite the statement.
Dividend amount should be transferred in a separate Bank Account within ____________ days of its declaration
Select the correct answer from the options given below and rewrite the statement.
__________ holders get dividend from residual profits.
Match the pairs.
| Group ‘A’ | Group ‘B’ |
| a) Dividend | 1) Equity Shareholders |
| b) Interest | 2) Appropriation of profit. |
| c) Interim Dividend | 3) Recommendation of Secretary. |
| d) Final Dividend | 4) Registrar of company. |
| e) Fluctuating Rate of Dividend | 5) Obligatory to pay |
| 6) Decided and Declared by the Board of Directors. | |
| 7) Decided by Board; declared by Members. | |
| 8) Decided by President of India. | |
| 9) Company not allowed to pay. | |
| 10) Declared by Govt. of India |
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 fixed rate.
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 shareholders.
Complete the sentence.
Dividend is paid to __________.
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)
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Preference Shares | 1) ____________ |
| b) Equity Shares | 2) ____________ |
| c) Deposit holders | 3) ____________ |
| d) ____________ | 4) Payment of Dividend |
| e) ____________ | 5) Dividend Declared but not paid/claimed |
(Unclaimed/Unpaid Dividend, Fixed rate Dividend, Dividend at a Fluctuating Rate, Interest, Within 30 days)
Explain the following term/concept.
Dividend
Explain the following term/concept.
Rate of Dividend.
Answer in brief.
State any four points to be kept in mind by a Listed Company with respect to Dividend.
Answer the following question.
Define Dividend and explain its features.
Give one word or phrase for the following sentence:
Latin word for "Dividend".
