Declaration and Payment of Dividend DEPOSITING OF AMOUNT OF DIVIDEND
Dividend
Meaning dividend means distribution of any sum to memebers out of profit and out of free reserve available The amount of dividend (including interim dividend) shall keep in separate schedule bank account within 5 days
Interim Dividend may be declared by the board to from the date of declaration of dividend
Interim Dividend any time during the period from closure of financial
year till the holding of general meeting
Types of Dividend
When the dividend is declared at the general meeting Payment of Dividend
Final Dividend of the company is known as final dividend
recommended by BOD approved by shareholder
Current Year profit 1) Dividend shall be payable only to registered shareholder or his order or his banker
declaration of dividend Past Year Profit a. In case if shareholder direct company regarding his payment of dividend to particular
Reserves banker, and if company do so, then it shall be deemed that company had pay dividend
to shareholder
unpaid and unclaimed 2) Dividend are payable in cash not in kind, dividend that are payable are payable to shareholder in
dividend
cash may be paid by cheque or dividend warrant or through any electronic mode
Establishment of Funds
IEPF,
Credit to the fund and utilisation of funds
Punishment for failure
to distribute dividend Exemptions Note:
Note
within 30 days
1) If company fails to repayment matured deposit or fail to comply with the provision 73 and 74, then
Note
Note:
te company shall not permit to declare any dividend to members
2) Section 8 companies is prohibited to declared dividend to his members, its profit is intending to be
1) The declaration of interim dividend is done out of profit before adopting of the account by the shareholder the interim applies only in promoting the object of which is formed
dividend is paid between TWO AGMS
2) Source of declaring dividend
UNPAID DIVIDEND ACCOUNT
From the surplus in the profit and loss a/c
Current year profits
profit generated in the financial year till the quarter
preceding the date of declaration of the interim
dividend
3) If the company has incurred loss during the financial year up to the end of quarter immediately preceding the date of
declaration of interim divided
a. Then such rate of such interim dividend shall not exceed the average rate of preceding 3 financial year
b. Amount of dividend shall be deposited in separate scheduled bank account within 5 days from the date of
declaration
c. All the provision of which are applicable to the payment of dividend shall also apply in case of interim
dividend
4) Final Dividend
a. The rate of final divided recommended by BOD cannot increase by the members (MTLB JITNA BHI RATE
BOD DECIDE KREGI USSE JYDA MEMBER RATE KO INCREASE NI KR SKTE)
PROVISION REGARDING
REGARDING DECLARATION
DECLARATION AND PAYMENT OF DIVIDEND
PROVISION REGARDING
REGARDING DECLARATION
DECLARATION AND PAYMENT OF DIVIDEND
• where in any year
there is no adequate
• Profit From Current • before declaring • transfer of profit to profit for declaring
Source of declaration fo dividend
Declaration of dividend when there is
Provision of money by the government
inadequacy or absence of profit
Trasnfer to Reserve
Financial Year dividend, losses and reverse for any dividend, the company
• after providing unprovided previous financial year has may decalre dividend
depreciation year depreciation are been left to the out of accumulated
• Profit of any previous required to be setoff discretion of the profit by complying
Year aganist profit of company certain condition
• after providing company for the • the rate of dividend
depreciation, Only current year shall not exceed
free reserve and average rate of
credit balance of dividend of last
profit and loss use preceeding
financial year
• total amount drawn
from accumuated
profit shall not
exceed 10% of PUSC
• drawn amount first
utilised for current
year losses
• balance in reserve
after drawn shall
no fall below 15%
of PUSC
PUNISHMENT
PUNISHMENT FOR FAILURE
FAILURE TO DISTRIBUTE
DISTRIBUTE DIVIDEND
DIVIDEND WITHIN 30
30 DAYS
Company declare dividend must pe paid or the dividend warrant must be posted within 30 days from the date of
declaration of dividend to the shareholders
If company fails to post dividend warrants to the registered address of the member within 30 days of declaration,
then following punishment levy on company and directors
1) Company = rate of 18% p.a during the period of which such default continues
2) Director = 1000 for every day during which such default continues or imprisonment
EXEMPTION FROM
FROM PUNISHMENT
1) By operating of any law
2) Shareholder direct company regarding the payment of dividend and those direction cannot be
complied with and the same has been communicated to him
3) Dispute regarding the rights to receive the dividend
4) Dividend lawfully adjusted by the company against any sum due it from the shareholder
5) Any some reason within in prescribed period of 30 days, was not due to any default on the part of
the company (Mtlb kisi aur jawah se agr dividend shareholder ko ni milti, by delay in post toh fir
company ki glti ni hogi)
INVESTOR EDUCATION UTILISATION
UTILISATION
AND PROTECTION FUND OF FUND
Amount given by the refund of unclaimed
central government dividend, matured
deposits, matured
debentures the
Donation by the application money due for
central government refund and interest
thereon
amount lying in the
upaid dividend account
amount in IEPF promotion of investorses,
education awarness
income from
investment
distribution of any
application money disgorged amount eligible
and identifiable
applicants for shares or
debentures who have
matured deposits suffered losses due to
wrong action by person ,
matured debentures reimbursement of legal
expenses incurred in
pursuing class action
interest suits by members,
debentures holders or
depositors as may be
aount received from sanctione by the tribunal
sale proceeds
any other incidental
redemption amount thereto in accordance
with the rules framed
under investor education
other amounts fund
Above unclaimed and unpaid amount after 7 seven years transferred to IEPC A/c
CONSTIT
CONSTITUTION
TITUTION OF THE AUTHORITY
AUTHORITY FOR
FOR
ADMINISTRATION
ADMINISTRATION OF FUND
FUND
