Urgent: Doubt on Dividnd

dear friend

dividend is to be paid on paid up capital

yes on  paid up capital..

Dividend is a payout to the shareholders on the money they have invested in the company.....and the money they have invested in paid up capital..so it has to be paid on paid up capital...:-)

dividend is a metter of comany policy".it is paid as a percentage of paid up share capital
"

Dear jai 

Shruti is absolutaly correct .....

regrds

sandeep

Company law is silent on this matters as there is provided that dividend is to be paid out on capital as such % as Board of directors thinks fit.

Genarally Article of association of the company provide in this regards. if article is silent than offcourse dividend is to be paid out on capital and whats capital is to be taken......that is Issued Capital irrespective is the fact whats amount is paid on it. This is a required to be amended.

paid up capital

dear ravi prakash can u show some provision in this regard. dividend is always payable proptionately. according to you how it can become prop. for ex. suppose a holder pays full amount on shares and another holder pay partial amount so according to you both holders can receive same amount of dividend.

dividend is to be calculated on total paid up capital and after that it is needed to be distributed to individual holder accprding to their paid up capital.

regards

tarun rustagi

PAID UP CAPITAL

PAID UP CAPITAL

obviously paid up capital,,,,,,,,,,,,,,,,,