Advertisements
Advertisements
Question
Dividends can be paid out of capital.
Options
True
False
Advertisements
Solution
This statement is False.
Explanation:
Dividend is the return payable to the company's shareholders for their investment in the share capital. It is the portion of profits of the company paid to its shareholders. It is payable out of the earnings of the company. The dividend is an unconditional payment made by the company. Dividends must be paid in cash and not in kind.
APPEARS IN
RELATED QUESTIONS
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.
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 ______.
Answer in one sentence.
Who has right to recommend Dividend?
Select the suitable option for the following.
Govt. Fund ____________.
Select the suitable option for the following.
Preference Shares ____________.
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 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.
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.
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
Study the following case/situation and express your opinion:
GOLD Co. Ltd. declares a dividend of ₹ 10/- per share for F.Y. 2019-20.
- Is the company under default, if the dividend was not paid within 30 days of its declaration?
- Is the company right in transferring the unpaid dividend to its Debenture Reserve Account?
- Does the company have to transfer the amount of unpaid dividends to IEPF after 30 days?
