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प्रश्न
Justify the following statement.
Equity shares get last priority in dividend.
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उत्तर
- A dividend is a share in the distributable profits of the company to which the shareholder is entitled when it is formally declared by the company.
- The dividend is payable only to the registered shareholders of the company.
- Preference shareholders are entitled to dividends before it is paid to the equity shareholders as per the terms of the issue of preference shares.
- Equity shareholders will get dividends from residual profits. i.e. after paying to preference shareholders and arrears of dividend on cumulative preference shares.
- Thus, Equity shares get the last priority in dividends.
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.
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.
Shareholders decide about the rate and amount of profit to be given as 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______.
Answer in one sentence.
Who has right to recommend Dividend?
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
Arrange in Proper Order:
- Closure of Register of Members.
- Intimate Stock Exchange of Board Meeting.
- Intimate Stock Exchange of declaration of dividend.
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?
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
