DIVIDEND

M R . AT U L A B H I M A N A G A L AW E
 Particular Amount

Sales XXXXX

Less: All Expenditure

XXXX
(Purchase, Production, Marketing and Office)

Profit Before Interest and Tax XXXX

Less: Interest on Borrowed Capital XXX

Profit Before Tax XXXX

Less; Corporate Tax (30% on profit) XXX

Profit After Tax XXXX

Less: Dividend For Preference Shares XXX

Profit/Earning Available for Equity Shareholders XXXX

 Reserve Fund
Profit/Earning
Available for Equity
Shareholders
Dividend
 DEFINITIONS

• The word ‘Dividend is Derived from the Latin word ‘Dividendum’ which
means ‘to be divided’
• A dividend is a distribution of a portion of a company's earnings, decided by
the board of directors, to a class of its shareholders.
• ‘It is the portion of corporate profits which has been set aside and declared
by the company as liable to be distributed among the shareholder’ __ Justice
Gulam Hasan
• ‘Dividend means the portion of the profit of the company which is allotted
to the holders of shares of the company’ __ The Supreme court of India
• ‘Dividend are profits of a trading company divided among the members in
proportion to their shares’___ S. M. Shah
• A share of the after-tax profit of a company, distributed to its shareholders
according to the number and class of shares held by them.
 FEATURES

1. Reward on Investment
2. Part of Profit
3. Rate of Dividend
4. Shareholder Sanction
5. Source of Dividend
6. Types of Dividend
7. Dividend Policy
8. Affect the Market Price
9. Affecting Factors
 PROVISIONS REGARDING
ASCERTAINMENT OF DIVIDEND
• Source of Dividend
• Out of Current Profits
• Out of Accumulated Profits & Reserve
• Out of money provided by Government
• Out of Capital Profits
• Reserve
• Provision for Depreciation
PROVISIONS REGARDING DECLARATION
OF DIVIDEND

1. Resolution at AGM
2. Dividend Rate
3. Provisions as per Law
4. No Dividend for Past Year
5. Revocation of Declared Dividend
 PROVISIONS REGARDING
PAYMENT OF DIVIDEND
• Payable To
• Rate of Dividend
• Payment in Proportion to the amount Paid-up
• Mode of Payment
• Time Period of Payment
• Penalty for Default
• Statutory Debts
• Payment in Cash
 PROCEDURE

Convening Board Notice to Stock

Resolution by Board
Meeting Exchange

Preparation of Annual General Ensures Provisions

Dividend List Meeting are Completed

Public Notice to Transfer to

Posting of Dividend
Share Warrant Unpaid/Unclaimed
Warrant
holders Dividend Account
 UNPAID/UNCLAIMED DIVIDEND

• Unpaid/Unclaimed Dividend Account

• Penal Interest
• Investor Education and Protection Fund
• Payment of Unpaid/Unclaimed Dividend
• Penalty