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
Yes, if its pari passu, than dividend need to be paid even on newly issued shares.
However it will be paid on pro rata basis i.e from the date of allotment till year end and not for full year even it is stated that it is issued pari passu.
| Originally posted by : Jagruti (CS) | ||
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Yes, if its pari passu, than dividend need to be paid even on newly issued shares. However it will be paid on pro rata basis i.e from the date of allotment till year end and not for full year even it is stated that it is issued pari passu. |
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Dividend is always paid on per share basis for full year on the shareholding on any specified date. It does not depends upon the date of issue. Therefore, even if the shares were allotted before 1 day of dividend declaration (record date), it would be entitled for full dividend.
CAclubindia
