Is that possible for Co. to Declare Ex-Date of Final Dividend before the Dividend Approved in AGM ? means Ex-Date of Dividend are prior to AGM Date for e.g. Co. X recommend final dividend in board meeting on 10th August subject to approval in AGM, AGM Held on 19th September and Pass Ordinary Resolution for the final dividend And Co. declare EX-Dividend date is 10th September.
27 January 2023
Yes. Book closure is required for completing all pending transfers received by the company on or before the book closure date. During the book closure period, the Company does not take any further transfers. The book closure period typically coincides with the AGM date. The last date of the book closure period used to be the date of AGM mostly. The company used to update all transfer records and had the list of shareholders ready by the AGM. Transfers during the book closure period were disregarded. Thus, the company could declare and pay dividend to the shareholders as on the record date. Record date is typically the date prior to the book closure period. For example, if the book closure period is from 24th June to 30th June, the 23rd June will be the record date. The Company then determines the entitlement of the members whose name appear in the register of members as on 23rd June after giving effect to all valid share transfers lodged with the Company before closing hours.
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