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महाराष्ट्र राज्य शिक्षण मंडळएचएससी वाणिज्य (इंग्रजी माध्यम) इयत्ता १२ वी

Dividends can be paid out of capital. - Secretarial Practice

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प्रश्न

Dividends can be paid out of capital.

पर्याय

  • True

  • False

MCQ
चूक किंवा बरोबर
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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.

shaalaa.com
Legal Provisions on Dividend
  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
2021-2022 (March) Set 1

संबंधित प्रश्‍न

Write a word or a term or a phrase which can substitute the following statement.

Number of days within which payment of dividend be completed by company, after its declaration.


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.

All categories of shareholders get a fixed rate dividend.


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.

Predecided and a fixed rate of dividend is paid to ______.


Answer in one sentence.

Who has right to recommend Dividend?


Select the suitable option for the following.

Preference Shares ____________.


Select the suitable option for the following.

Equity 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.

Dividend is payable every year, irrespective of the profits made by the company.


Arrange in Proper Order:

  1. Recommendation of Dividend
  2. Checking sufficiency of profits
  3. 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.

  1. Is it justified to pay the dividend firstly to its Preference Shareholders and then after to Equity Shareholders?
  2. Is the AGM required to approve the same?
  3. Can the company pay dividend in cash?

Justify the following statement.

Listed Company has to follow additional guidelines on dividend matters.


Justify the following statement.

Equity shares get last priority in dividend.


Arrange in Proper Order:

(a) Board Meeting

(b) Shareholder approval

(c) Board's Recommendations


Explain the following term/concept in detail:
Listed Company


Study the following case/situation and express your opinion:

GOLD Co. Ltd. declares a dividend of ₹ 10/- per share for F.Y. 2019-20.

  1. Is the company under default, if the dividend was not paid within 30 days of its declaration?
  2. Is the company right in transferring the unpaid dividend to its Debenture Reserve Account?
  3. Does the company have to transfer the amount of unpaid dividends to IEPF after 30 days?

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