book closure

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Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2010 diff. b/w book closure and record date.
can a company give 7 days advance notice of book closure for A.G.M.

Jayashree S Iyer

Jayashree S Iyer (Expert)
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14 December 2010 Book Closure generally refers to the period during which the register of members will be kept closed for the purpose of finalization of list of members eligible for certain benefits viz., dividend,right share,bonus share, etc. During this period no fresh request for transfer of shares is accepted. We can say that book closure enables fixing a record date.

Record date, on ther other hand, is the cut-off date and if a person's name appears on that date as member in the register of members then he will entitled for dividend, right share, etc. It's generally the last day of the book closure date.

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udit sharma

udit sharma (Expert)
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14 December 2010 Very nicely explained by the Expert!
Appreciate the Gud work:-)

As per Clause 16 of the Listing Agreement, you must give a notice of atleast 7 working days of the commencement of Book Closure.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2010 how many book closure a company have in 1 f.y.

Jayashree S Iyer

Jayashree S Iyer (Expert)
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14 December 2010 As per Section 154 of the Companies Act, a company may after giving 7 days previous notice close the register of members for a period not excceding 45 days in each year but not exceeding 30 days at any one time.

It does not specify the number of times. However the book closure is to be done for specific reasons viz., dividend declaration, right issue, bonus issue, etc. Hence if reasonable notice is given and you can justify your action for closure of books there should not be any objection.

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2010 is any any advertisement also give for record date