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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
Dividend once declared cannot be revoked.
State whether the following statement is true or false.
All categories of shareholders get a fixed rate dividend.
Complete the sentence.
Dividend can be declared only on recommendation of______.
Complete the sentence.
The meeting at which final dividend is approved is ______.
Complete the sentence.
Predecided and a fixed rate of dividend is paid to ______.
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.
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.
Dividends can be paid out of capital.
