CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Declaration of dividend by unlisted public company


Kanika Gupta (C.S Trainee)     16 July 2010

Kanika Gupta
C.S Trainee 
 1 likes  100 points

| My Other Post

whether a public company (unlisted) is required to fix a record date / book closure and give notice of the same in newspapers while declaring dividend???

avater

vivek (CS)     16 July 2010

vivek
CS 
 77 likes  751 points

View Profile | My Other Post

Definetely if a Company want to distribute dividend it will have to Fix a Record Date. But there is no mandatory requirement to publish the same in Newspaper you can put the same in Notice itself. No mandatory requirement of Book Closure.

 

Regards,

avater

CS Ankur Srivastava (Company Secretary & Compliance Officer)     16 July 2010

CS Ankur Srivastava
Company Secretary & Compliance Officer 
 1983 likes  17714 points

View Profile | My Other Post

Yes, Ms. Kanika,

 

Under Section154 of the Companies Act, 1956 A company may, after giving not less than seven days previous notice by advertisement in some newspaper circulating in the district in which the registered office of the company is situated, close th register of members for any period not exceeding in the aggregate of forty five days in each year but not eceeeding 30days at any one time.

 

Therefore, for closing the register of members the advertisement in any newspaper is necessary.

 

YOu may go gor Record date for determination of the entitlement of dividend and for Record Date no advertisement is required.

 

avater

Vijayamahantesh V. Khannur (Company Secretary)     16 August 2010

Vijayamahantesh V. Khannur
Company Secretary 
 91 points

View Profile | My Other Post

Requirement of Section 154 applies to both listed and unlisted companies. Hence public notice in newspapers is mandatory for book closure

BHAVESH DOSHI (CS)     16 August 2010

BHAVESH DOSHI
CS 
 42 points

View Profile | My Other Post

whether closure of register of member u/s 154 is mandatory  for the unlisted public co for the purpose of dividend ? or d only record date wil do?

BHAVESH

avater

Ajay Mishra (Company Secretary)     16 August 2010

Ajay Mishra
Company Secretary 
 4455 likes  74277 points

View Profile | My Other Post

Dear Friend

 

If you want to declare and distribute dividend, you must follow as a good corporate practice to close the register of member fix the record date and made public notice as per section 154 of the Companies Act, 1956.

 

 

Regards

CS Ajay Mishra


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Related Threads


Loading

Popular Discussion


view more »



Trending Tags
GST Live Class    |    x