Kanika Gupta (C.S Trainee) (100 Points)
16 July 2010whether a public company (unlisted) is required to fix a record date / book closure and give notice of the same in newspapers while declaring dividend???
vivek
(CS)
(751 Points)
Replied 16 July 2010
Definetely if a Company want to distribute dividend it will have to Fix a Record Date. But there is no mandatory requirement to publish the same in Newspaper you can put the same in Notice itself. No mandatory requirement of Book Closure.
Regards,
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 16 July 2010
Yes, Ms. Kanika,
Under Section154 of the Companies Act, 1956 A company may, after giving not less than seven days previous notice by advertisement in some newspaper circulating in the district in which the registered office of the company is situated, close th register of members for any period not exceeding in the aggregate of forty five days in each year but not eceeeding 30days at any one time.
Therefore, for closing the register of members the advertisement in any newspaper is necessary.
YOu may go gor Record date for determination of the entitlement of dividend and for Record Date no advertisement is required.
Vijayamahantesh V. Khannur
(Company Secretary)
(91 Points)
Replied 16 August 2010
Requirement of Section 154 applies to both listed and unlisted companies. Hence public notice in newspapers is mandatory for book closure
BHAVESH DOSHI
(CS)
(42 Points)
Replied 16 August 2010
whether closure of register of member u/s 154 is mandatory for the unlisted public co for the purpose of dividend ? or d only record date wil do?
BHAVESH
Ajay Mishra
(Company Secretary)
(74337 Points)
Replied 16 August 2010
Dear Friend
If you want to declare and distribute dividend, you must follow as a good corporate practice to close the register of member fix the record date and made public notice as per section 154 of the Companies Act, 1956.
Regards
CS Ajay Mishra
CAclubindia
