Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Listing Agreement

CA Suraj Prasad Shaw (Chartered Accountant) (504 Points)

05 July 2011

Is it mandatory to mention the date of payment of dividend in intimaion to stock exchange as per clause 20 of the listing agreement, what will happen if it is not mentioned in the intimation to Stock Exchange?

Reply
Follow
Share

7 Replies

Charu (nil) (122 Points)
Replied 05 July 2011

As per clause 20(a)of the listing agreement, the listed company shall disclose all dividends and/or cash bonuses recommended or declared or the decision to pass any dividend or interest payment. It requires only quantum of dividend declared(per share basis) to be intimated, not the date of payment thereof.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Suraj Prasad Shaw (Chartered Accountant) (504 Points)
Replied 05 July 2011

Originally posted by : Charu
	As per clause 20(a)of the listing agreement, the listed company shall disclose all dividends and/or cash bonuses recommended or declared or the decision to pass any dividend or interest payment. It requires only quantum of dividend declared(per share basis) to be intimated, not the date of payment thereof.

Are you sure..........

Please find...

20. The company will, immediately on the date of the meeting of its Board of Directors held to consider or decide the same, intimate to the Exchange within 15 minutes of the closure of the Board Meetings by Letter/fax, (or, if the meeting be held outside the City of Mumbai, by fax/ telegram)—

a. all dividends and/or cash bonuses recommended or declared or the decision to pass any dividend or interest payment;

b. the total turnover, gross profit/loss, provision for depreciation, tax provisions and net profits for the year (with comparison with the previous year) and the amounts appropriated from reserves, capital profits, accumulated profits of past years or other special source to provide wholly or partly for the dividend, even if this calls for qualification that such information is provisional or subject to audit.

c. The decision on Buyback of Securities.

Provided that an intimation made to stock exchanges under sub-clause (a) shall also contain the date on which dividend shall be paid/dispatched.

SkDash (CS (Member) CWA (Final)) (909 Points)
Replied 05 July 2011

Charu seems to have deeper knowledge

(Guest)

Date is basic thing, It has to be mentioned. How does the Stock Exchange Officials and other stake holders will come to know about the date, if is not mentioned??

They are not god and they don’t have time to find out the date from previous records, because ur company alone is not listed.

Mentioning the date is basic thing, that doesn’t require provision of the law. Interpret the law in common parlance.

Charu (nil) (122 Points)
Replied 06 July 2011

Originally posted by : Suraj Prasad Shaw
	Originally posted by : Charu As per clause 20(a)of the listing agreement, the listed company shall disclose all dividends and/or cash bonuses recommended or declared or the decision to pass any dividend or interest payment. It requires only quantum of dividend declared(per share basis) to be intimated, not the date of payment thereof. Are you sure.......... Please find... Normal 0 20. The company will, immediately on the date of the meeting of its Board of Directors held to consider or decide the same, intimate to the Exchange within 15 minutes of the closure of the Board Meetings by Letter/fax, (or, if the meeting be held outside the City of Mumbai, by fax/ telegram)— a. all dividends and/or cash bonuses recommended or declared or the decision to pass any dividend or interest payment; b. the total turnover, gross profit/loss, provision for depreciation, tax provisions and net profits for the year (with comparison with the previous year) and the amounts appropriated from reserves, capital profits, accumulated profits of past years or other special source to provide wholly or partly for the dividend, even if this calls for qualification that such information is provisional or subject to audit. c. The decision on Buyback of Securities. Provided that an intimation made to stock exchanges under sub-clause (a) shall also contain the date on which dividend shall be paid/dispatched.

The learned author is right. Clause 20 has been amended on dated 16-12-2010 by inserting highlighted proviso. I beg to correct myself

Upgrade to CAclubindia Pro. Subscribe Now!

Chirag (CA) (33 Points)
Replied 06 July 2011

Thanks for the informations Mr. Suraj Prasad, Charu and Ankur. A very special thanks to Mr. Santosh , hon'able Company Secretary for his valuable contribution to the topic.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 06 July 2011

The company will have to inform to the stock exchange about the outcome of the Board Meeting in which the dividend has been recommended within 15 minutes of the closure of Board Meeting.

The company shall have to disclose following:-

Decision of recommendation of Dividend

Quantum of dividend (per share basis)

Date of payment of Dividend.

Earlier an 21 days advance notice before the dividend payment date about the date of dividend payment was to be submitted to the stock exchange but now this requirement has been taken away.