Advertisement Remove all ads

Dividend Can Be Paid on Advance Amount of Calls Received. - Secretarial Practice

Dividend can be paid on advance amount of calls received. 

Advertisement Remove all ads

Solution

Ans. False:

Reasons: 

(1) By dividend we mean the return paid to a shareholder out of profits distributed by the company.

(2) Call amount is paid towards unpaid value of shares in case of partly paid shares.

(3) For some reasons, a share older may decide to make advance payment of calls for his own convenience.

(4) Dividend is paid on paid - up value of shares; uniformly to all the shareholders of company.

(5) If the Articles of company permit, interest may be paid on advances made towards calls.

(6) But, there is no provision to pay dividend on the advance payment of calls.

 

Concept: Procedure of Payment of Dividend
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×