Chap 8 Distribution Of Profit

Question 1

Interim dividend is approved/declared by

Answer 1

Director in Board Meeting

Question 2

Final dividend is approved/declared by

Answer 2

Recommended by director
Approved/declared by members in AGM

Question 3

Members cannot

Answer 3

Exceed dividend recommended by directors

Question 4

Restrictions on dividend

Answer 4

Cannot be paid from
1. Profits from disposal of immovable property or assets of capital nature except it is ordinary course of business
Company has set off such profits against such losses
3. Unrealised gain on investment property
4. Amount exceeding directors recommendation

Question 5

Listed company manner of payment

Answer 5

In cash - electronic only
In kind - shares of listed company

Question 6

Unlisted company manner of payment

Answer 6

Cash - cheque, warrant, electronically

Question 7

Dividend is paid to whom

Answer 7

Registered shareholders
To their order

Question 8

Dividend by whom to pay (kon karega)

Answer 8

Share registerar
Paying agent (bank,service provider)

Question 9

Timing of payment of dividend

Answer 9

Within specified days of declaration (10 days)

Question 10

Final dividend

Answer 10

At AGM

Question 11

Interim dividend

Answer 11

Declared @ commencement of book closure
Declared @ board meeting (if no book closure)