GK
ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Within five years
|
|
|
Within six years
|
|
|
Within seven years
|
|
|
Within certain time
|
Detailed explanation-1: -In case of interim dividend, the payout to the shareholders has to happen within 30 days from the date of the announcement of the dividend. However, in case of final dividend, the actual payment of dividend only has to be made within 30 days of the Annual General Meeting (AGM).
Detailed explanation-2: -A final dividend may be paid when declared, as that is the date that the shareholder gains a legally enforceable right to the declared dividend, even if it is actually paid later.
Detailed explanation-3: -(1) The rate of dividend declared shall not exceed the average of the rates at which dividend was declared by it in the three years immediately preceding that year. This sub-rule shall not apply to a company, which has not declared any dividend in each of the three preceding financial year.