Time period of book closure
This query is : Resolved
24 July 2013
for how many days company shall close its books in respect of dividend
24 July 2013
PERIOD OF CLOSURE OF REGISTER OF MEMBERS
Section 154 of the Act provides that the Register of members can be closed for an aggregate period of 45 days in a year but not exceeding 30 days at a time. A company may decide the book closure subject to the compliance with certain requirements under the Act. Whenever there arises a need to close Register of members, a company may after giving not less than seven days previous notice by advertisement in some newspapers circulating in the district in which the registered office of the company is situated, close the Register of members or the Register of debenture holders for any period or periods not exceeding in the aggregate forty-five days in each year, but not exceeding thirty days at any one time. The company will give to the Stock Exchanges where the shares of the Company listed, notice in advance of at least seven working days, or of as many days as Stock Exchanges may from time to time reasonably prescribe, stating the dates of closure of its transfer books (or, when the Transfer books are not to be closed, the date fixed for taking a record of its shareholders or debenture holders) and specifying the purpose or purposes for which the transfer books are to be closed (or the record is to be taken) and to send copies of such notices to the other recognized stock exchanges in India.
The closure of Register is cloaked with the right to refuse the transfer of shares/debentures. Record date is an alternate for closing the registers. The purpose of closing the register is to get registers update and to fix a cutoff date for the purpose of payment of dividend or issue of right and bonus shares. The purpose can also be achieved by taking a record date for a day.
As per the Listing agreement, the listed companies are required to give advance notice of atleast 21 days before closure of books and in the case of dematerialized securities, the notice period is reduced to 15 days.
PERIOD OF CLOSURE OF REGISTER OF MEMBERS
Section 154 of the Act provides that the Register of members can be closed for an aggregate period of 45 days in a year but not exceeding 30 days at a time. A company may decide the book closure subject to the compliance with certain requirements under the Act. Whenever there arises a need to close Register of members, a company may after giving not less than seven days previous notice by advertisement in some newspapers circulating in the district in which the registered office of the company is situated, close the Register of members or the Register of debenture holders for any period or periods not exceeding in the aggregate forty-five days in each year, but not exceeding thirty days at any one time. The company will give to the Stock Exchanges where the shares of the Company listed, notice in advance of at least seven working days, or of as many days as Stock Exchanges may from time to time reasonably prescribe, stating the dates of closure of its transfer books (or, when the Transfer books are not to be closed, the date fixed for taking a record of its shareholders or debenture holders) and specifying the purpose or purposes for which the transfer books are to be closed (or the record is to be taken) and to send copies of such notices to the other recognized stock exchanges in India.
The closure of Register is cloaked with the right to refuse the transfer of shares/debentures. Record date is an alternate for closing the registers. The purpose of closing the register is to get registers update and to fix a cutoff date for the purpose of payment of dividend or issue of right and bonus shares. The purpose can also be achieved by taking a record date for a day.
As per the Listing agreement, the listed companies are required to give advance notice of atleast 21 days before closure of books and in the case of dematerialized securities, the notice period is reduced to 15 days.
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