22 November 2012
A company having paidup capital 5 Lacs shares @ Rs. 10/-each (fully paidup) as on 31.03.2012. it issued fresh allotment of 100000 shares @ Rs. 10/- each (fully paidup) on 15.04.2012.
Case 1 Date of Board Meeting - 15.05.2012 Date of AGM 29.09.2012
Case 2 Date of Board Meeting - 10.04.2012 Date of AGM 29.09.2012
kindly suggest the amount of dividend to be paid to equity shareholders if rate of dividend proposed by management is 10%
book closure date 31/03/2012 record date 20/09/2012
No it will not be possible. It will be decided by Board meeting. Generally it will end as on date of AGM.
For example:
If in Board meeting dated 24.04.2012 decided to pay dividend of rs. 2 per shares at AGM. AGM is on 20.06.2012. The The Board will decide that the "Closure of Register of member/Book closure.
It will be from 15.06.2012 to 20.06.2012 (both days inclusive) for the purpose of dividend.
23 November 2012
Sir, Ok. WE will consider your example. Plz give your advise for the dividend paymant amount as per your dates of book closure and our authorised capital issues.
23 November 2012
The dividend shall be payable to the shareholders whose name is registered on the register of members as on the date of Record date or book closure.
Therefore the company should pay dividend on 600000 equity shares.
A company may close the Register of members for the purpose of ascertaining who are eligible to receive dividend on the date of declaration of dividend. In case of the annual dividend, the persons who are members as on the date of the annual general meeting will be eligible to receive the dividend as the dividend is approved by the members on the day when annual general meeting is held.
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