dividend

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Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2010 In one company, relating to FY 2009-10, right issue made on 23.3.2010,fully subscribed, capital increased by right isuue, then on 23.05.2011 preferencial allotment made , further share capital increased. My question is on what capitl amount dividend declared/proposed by the director payable? and we provide dividend proposed in the balance sheet on the basis of management representation,what if it will not approved in AGM.Pls guide me on this matter.

Rasesh

Rasesh (Expert)
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18 June 2010 Dividend is paid to those shareholders whose names are regisered as members as on the date of Book Closure or Record Date. Management can pay interim dividend on the basis of projected profit. The shareholders have a right to reject it. But as auditors so long as the interim dividend is within the projected profit, you need not worry.