Dividend Is Paid up on Company's Paid up Share Capital Including Equity and Prefrence Shares

1.DIVIDEND

Dividend is paid up on company's paid up share capital including equity and Prefrence shares u/s2(14)

2.Types of Dividend

Intrim Dividend:Dividend declared between two annual general meetings of the Company

Final Dividend:Dividenddeclared at the AGM is said as Final Dividend.

3.Sec205:No Company shall pay dividend in any year without charging depriciation in the Profit and loss account for the current year and there is no balance of unprovided Depriciation of any previous years.

4.Sec205 (1)( c): Central Gov. has power to allow any Company in public interest to pay dividend without providing Depreciation in the financial year.

5.Payment of dividend in case where company has incurred loss in the previous year u/d 205 (1) (b):

The amount of loss /
The amount which is equal to the amount provided for depriciation for the year

Whichever is less should be adjusted against the profit of the Company for the year for which dividend is proposed to be declared

Therefore the Company cannot pay dividend in the latter year unless the Company has adjusted the amount of loss against the profit of the year reffered above

6.A company which could not declare dividend at a general meeting can do so in any subsequent general meeting.But once the dividend is declared at AGM,a further dividend can not be declared for the same year

·183  Dividend amount to be transferred to dividend account within 7 days of declaration.

·183  Dividend Warrant must be posted within 30 days from the date of approval

·183  Where the dividend is not been paid or claimed within 30 days from the date of declaration, company shall transfer such amount to special account openedcalled”unpaid dividend account” within 7 days from the date of expiry of the said 30 days.

·183  Opening of seperate Bank Account for making payment of Dividends: within 5 days of declaring dividend(with schedule bank)

·183 

8.Company may close the Register of members for the purpose of ascertaining who are eligible to receive dividend on the date of declaration of dividend.

9. Listed Company must inform stock exchange 21 days in advance of closing the register of members. Company whose shares are in Dmat mode , the notice period of closure of dividend is reduced to 15

days.

10.Dispatch of dividend warrant for amount exceeding 1500/-should be sent by registered post and below that amount must be dispatched under certificate of posting.

11.Payment of dividend to NRI

The company is required to approach its authorised representative with the following documents;

1.Form A2 in duplicate duly filled up and signed by the applicant

2.Certified copy of Company's Audited Balance Sheht and P&l A/c for the period for which dividend is declared.

3.Certified copy of Resolution Passed at the AGM