Chapter 8 Declaration 9 Payment of Dividend

123 127

Understanding

Nominal Face value Re I

Purchase Price RS 1.000
Market value Rs 1,500

Dividend 1550 Of what

T ofDividend

Particulars0 Interim Final

Special

Proposed BOD BOD

Declared Bob sit Aam ordinand
business
paid g co
Period After
 g
accounting year of Fy
AOA can be declared Does not require
only when AoA specific provision
permits in AOA

teocable Yes consent of CANNOT BE

Al shareholder REVOKED

EhtÉ Dividend Intenm

inayggngts.IT

Note Dividend means

diction of profit

whichsharesarifordivided
Preference
Faulty
Depends on
cumulative Non
availability of
t Profits
cumulative
Arrears payable t
from future Dividend expires
profits if not declared

Sec
 I

soufejf.FI pay after depreciation as

per sch 11

Undistributed profits of previous fys after

depreciation as per sch 11 i e Balance in Pll Ale
Both of the above
Money given by cats a pursuance to a
Guarantee

to exclude
Profts
Unrealised notional revaluation gain
change in carryingamount

ital reserves cannot used for payment

be
Tdividendonly these can be used
Previous year losses or depreciation Not
provided for in current year Has to be
set off against currenturarisproff
capitalprofts cannot be used for dividend
AigitantEatiattisetetit own
discretion

Fate IIs Free reserve Is specified

reserve

j absence or
or
in

Inadequacy of poop
in current
year
1
If a co
proposes to declare dividend
t
out of Accumulated profits of previous

f FY transferred to Free reserve

such dividend shall be declared as per Rule3

Rule 3 of Companies Declaration and Payment or

110.2014
Dividend shall not exceed the lowest of follow in

1 Rate of dividend shall not exceed average

rate of preceding fy
 Note This sub rule shall not apply to a compan

which has not declared any dividend in

each of 3 FYS

Amount drawn lot Of PUS Ct FR

t
3 Amount so drawn First set off current
year loss if any

41 Balance in reserve Min 15 of Pu SC

Excl 100 U
FR 50 Cr
CY LOSS I crore

avg.am
Year

Proposed dividend 127

max rate 151 Elsinore

limit 2 A 10 0811010 507 150 E icy
M
3 withdraw 35 crores
Proposed 120A Allowed

tune

i 181 127
I
Deposit dividend amount in separate bank Ale
Pay dividend amount to shareholder
transfer unpaid or unclaimed ant UDA
statement of unpaid dividend website
After 7 years from tr f to UDA Trf dividend
to IELI

Once amount is transferred to IEP F can a

shareholder claim from IEP F
Yes

continuationofsec12
Co Shall deposit dividend amount within 5 days
from declaration in a separate bank Ale
Registered Holder vicky
or I to order
 I
to his Banker HDR

Paid only in not inland

IMPS RTGS
Cheque warrant I
Akina
Bonus cannot be issued in leyof dividend
Hoy in this section prohibits
Nothing
reserves
capaizing
Of profits

Sec 73
A co which fails to comply with
see 74
I
shall NOI declare any dividend
d
so as the failure continues
long

9 can see 8 company declare dividend of

lot even if there is loss in current year
A
 sect urtodistioute
ftp.entforfal
Where a dividend has been declared
such dividend has not been paid
But thdidus
warrant has not been posted
H

punishment
1
Every director who company
is knowingly a party 1
I 181 p a
Tail up to 2 years Interest
AND
Fine 7 Min 1,000 day
for each day the
default continues

Eatin No
offence deemed under this section
CADDO
14 Operation of Law
D Shareholder has given direction
those be
 the same has been community to SH
De
Dieu regarding right to receive dividend

A Dividend has been lawfully Adjusted against

any sum due to co from SH

Any other reason Not due to default on

part ofcompany

set UnpaidDividendunt
I Where dividend declared is nodded
in 30
day
co Trf such amount to VADA
within 7daL
2
Within Godoy of transfer to U PDA

G to prepare Name
statement
containing Address
t
w unpaid
Place it on website dividend
other ca ant
inscribe
3 to UPDA
on default in trf
I
IIht 12t.p.a from date of default
t
such interest shall accrue to benefits
of sit to whom such dividend is
unpaid

I cants shall apply to co concerned for

payment of such unpaid dividend ants

Igt
from date of
remains unpaid for 7
trf.to UPDA
Years

t
Trf such ant to
IEPF
To issue Receipt
on such payment

6 At in respect of which dividend is

fund aimed
not due to fault of

fnae years
 Transfer IEP F
such shares

Note Claimant can claim such shares from

IEP F thereafter

7
Penalty For contravention
x
Min Eltlaich 500 day 25,000 100
day
after first afterfst
t
Max 10 lakhs 2 lakhs

Add this in
your summary
notes as well

sect Investoreducationsponfund
Ca to establish IEP F

Source Amt credited to IEP F

Govt Amt 415 205A

 g 081956
Donation 2 19 Amr us 2050 Act

UDA trfd us 12415 sale proceeds

of
Application money Fractional
shares out of
Deposit Debentures 7,7 year
bonus mergers etc
Pref shares
7 years
interest income
other income
other amount

Utilisation CD Pro

C Class Action suits legalexpense Reimburse

D Distribute disgorged ant to eligibleapplican
Promotion education 9 awareness
p of
R Refund Dividend deposit etc
0 t other purpose incidental thereto

claimant may apply totepff

t
for refund

chair person EX Officio

CEO Capp t by ca
members 7
 Role of IEP FA
IdministerIEPF
Maintain separate accounts
spend money of IEP F for
carrying out
its objects

IditctuFnYndfi_zepetAuditedbycs
i.e Comptroller and Auditor General
of India

AuditedacII t
Hop

8126
Example
Pendinggistrationoftfi
1000 Registration Pending
8hAM

Salman Katrina
yr f shares
 haretransferred
have
through
instrument of transfer
And such instrument is sent to co for
registration
And such registration is pending
t

Tof dividend wir t Right issue

such shares to bonus issue
U PDA
t
t
written consent
kept in
unless abeyance
from transferor
for payment thereof
to transferee