HSC Commerce 12th Board ExamMaharashtra State Board
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State the Legal Provisions Regarding Declaration of Dividend. - HSC Commerce 12th Board Exam - Secretarial Practice

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Question

State the legal provisions regarding declaration of dividend.

Solution

  1. Regulation 85 of Table A provides that the company may declare dividend in its general meeting.
  2. The rate of dividend shall not exceed the rate recommended by the Board of Directors.
  3. When the company fails to redeem redeemable preference shares within the specified period, company shall not declare any dividend on its equity shares, so long as such failure continues.
  4. The company cannot declare dividends for past years in respect of which accounts are closed at previous annual general meeting.
  5. The company cannot declare further dividend after declaration of dividend at Annual General Meeting.
  1. The dividend once declared cannot be revoked (cancelled). 
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APPEARS IN

 2013-2014 (March) (with solutions)
Question 5.1 | 5.00 marks
Solution State the Legal Provisions Regarding Declaration of Dividend. Concept: Declaration of Dividend and Payment of Dividend.
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