Advertisements
Advertisements
प्रश्न
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?
Advertisements
उत्तर
- Yes, it is justified to pay the Preference shareholders first and then the Equity Shareholders. 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.
- Yes, AGM is required to approve the dividend. 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.
- Dividend payable in cash should be paid by cheque or warrant or by electronic mode to the entitled shareholder.
APPEARS IN
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.
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______.
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.
Preference shareholders get dividends from residual profits.
Arrange in Proper Order:
- Recommendation of Dividend
- Checking sufficiency of profits
- Board Meeting
Explain the following term/concept.
IEPF
Justify the following statement.
Listed Company has to follow additional guidelines on dividend matters.
Dividends can be paid out of capital.
Arrange in Proper Order:
(a) Board Meeting
(b) Shareholder approval
(c) Board's Recommendations
Explain the following term/concept in detail:
Listed Company
