Basic query in accounting

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pavankumar (Querist)
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29 October 2013 Whether below understanding is correct?
“Directors have proposed 15%Dividend for the current year.”
It means 15% Dividend is proposed for shares existing in previous year only..
I will be very much thankful to you.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 October 2013 it means 15% dividend to those shareholders who find mention in the list of shareholders on the cut-off date.

Normally a cut-off date is decided for closure of books for dividend purposes. the shareholders as on that date get dividend.

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