GENERAL KNOWLEDGE

Detailed explanation-1: -(x) Dividend has to be paid within 30 days from the date of declaration. (xi) In case of listed companies, Section 24 of the Companies Act, 2013 confers on SEBI, the power of administration of the provisions pertaining to non-payment of dividend. In any other case, the powers remain vested in Central Government.

Detailed explanation-2: -The dividend on equity shares can be distributed only after dividend on preference shares is declared. The amount of the dividend, including interim dividend, shall be deposited in a scheduled bank in a separate account within 5 days from the date of declaration of such dividend.

Detailed explanation-3: -How Declaring a Dividend Works. Before a cash dividend is declared and subsequently paid to shareholders, a company’s board of directors must decide to pay the dividend and in what amount. The board must agree on the cash amount to be paid to the shareholders, both individually and in the aggregate.

Detailed explanation-4: -Section 123(4): The amount of dividend shall be deposited in a separate account in a scheduled Bank within five days from the date of declaration of such dividend. When dividend has been declared by the company, shareholder can claim such portion of profit within 30 days from the date of depositing.