I have a query regarding the Dividend.
A Company has issued fresh equity shares in the mid of the year say in the month of January. At the time of declaring dividend are the new shareholders entitled to get dividend for the full year or should they be given dividend proportionate to the period of holding i.e from January to march.
Is is legally valid if they are given dividend for full year.
The member who is holding share on the record date he/she is entitled to get the dividend (irrespective of his holding- whether it is of one day or one year).
Regards,
New shareholder are entitle for the full year dividend. As per SEBI (ICDR) regulation there is pre requirement that shares issued shall rank pari-passu with the existing equity shareholders.
So its legally valid.....
The dividend is declared on the equity shares of the Company which stand issued on any specified date i.e. record date. Further, it is also declared as @ .... per share. There is no funda of the period.
Dividend is always given equaly by the company to all shareholders irrespective of their period of holding.
Dear all,
Thanks for your reply.
If the shares are issued by an unlisted Public Limited Company on "parri passu in all respects" , Is it valid to give the full year's dividend.. Is it applicable for both listed and unlisted company [closely held / widely held]...
regards
shobana
| Originally posted by : shobana | ||
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Dear all, Thanks for your reply. If the shares are issued by an unlisted Public Limited Company on "parri passu in all respects" , Is it valid to give the full year's dividend.. Is it applicable for both listed and unlisted company [closely held / widely held]... regards shobana |
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Correct. It is applicable for both listed and unlisted as well as private companies.
CAclubindia
