14 May 2010
Book Closure means the date from which the transactions for the transfer in the share of the company will not be considered in the register of members of the company. It means the transfer of shares between the Book Closure period will be recorded only after the end of the closure period. It consist of a period like 15-05-10 to 25-05-10. It means any tranfer between the period from 15-05-10 to 25-05-10 will be given effect after 25-05-10.
Record date is the date which is used for distribution of dividends to the shareholders of the co. The shareholders registered on the Record date are eligible to get the dividends declared by the co. It represents a particular date for eg. 20-05-10. Generally it falls during the Book Closure Period.
Book Closure generally means closure of register of members for the purpose of finalization of list of members for dividend or right share or bonus share entitlement.
For this finalization Purpose Company fixes a Record Date and intimate members about that date. This date is a message to the shareholder that --- if your name appears in the register of member on the record date then you will entitled for dividend or right share or bonus share. If you sell your share before the record date then of course your name will be removed from register and you will lose your entitlement for dividend or right share or bonus share.
Hope am able to clarify you the difference in correct manner.
17 May 2010
Rahul Sir : is it mean tht book closure is a period & record date is a particular date,which can fall on or before last date of book closure period?
Ankur Sir : is it mean tht record date should fall before book closure date?
17 May 2010
Ms Richa, My understanding says for the same as said by you. Here are some practical examples which I sopied for the NSE site (announcements made by companies to NSE)
Latest Corporate Announcements May 17, 2010 13:25 hours
Company XXX ltd. NSE Symbol XXXX
Announcement XXXX Limited has informed the Exchange that the Board of Directors at their meeting held on 14th May 2010 have recommended a dividend of 20% on the Equity shares of Rs.10/- each of the Company for the year 2009-10. The Company has fixed the Book Closure dates from 9th June 2010 to 16th June 2010 for the purpose of Dividend and AGM. (Source MSE)
Open this link > http://nseindia.com/ Then go to these paths -> Home > Corporates > Corporate Information > Corporate Actions
30 March 2017
Dear all, my company giving interim dividend on the board meeting held on 31st march 2017...what can be record date..I.e. can a record date will 5th april 2017..a prospective date..or it should be date before the board meeting
CAclubindia
