Dividend

This query is : Resolved

Ashok Kumar Bansal (Querist)
Follow

08 November 2011 A Company declared dividend for FY 2010-11, which was approved in AGM in September 2011, in between the Company has increased paid up share capital from Rs 50 Crore to Rs 100 Crore in June 2011, the Dividend is payable on capital of Rs 50 Crore or Rs 100 Crore.

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
Follow

08 November 2011 Dividend is payable on capital as on 31.03.2011 i.e Rs. 50 crores

Ashok Kumar Bansal

Ashok Kumar Bansal (Querist)
Follow

08 November 2011 Dividend is payable on the basis of books closer of the company and share holder is eligle to get the dividend if his name is appering in the register.

Tapas Ruparelia

Tapas Ruparelia (Expert)
Follow

09 November 2011 Richa can u please explain with reference to section?

As even I am confused because directors recommend DIVIDEND PER SHARE, and dividend has to be paid to every share holder as on book closure date on the basis of dividend per share declared!!

Srirang Mahabhagwat

Srirang Mahabhagwat (Expert)
Follow

10 November 2011 Dear Ashok the Dividend is always paid for the period ended. Generally the financial year. Even if there is an increase in the Share Capital as on the date of Dividend approval it will be paid as per the date of close of financial year. However it must be noted that the same is paid to the members who have the status of member on that date on which it is approved and subject to book closure norms.

Please go through the Section 205 of the Companies Act, 1956 for any clarifications.

Kindly correct if something is remaining

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now