0
0
Answer Now
Comment
Report
2
Answers
The salient features of this standard are:
โ Dividend can be declared out of free reserves and surplus in the profit and loss account of the
company. However, dividend should not be declared out of the Securities Premium Account or the
Capital Redemption Reserve Account or Revaluation Reserve or Amalgamation Reserve or out of
profit on reissue of forfeited shares or out of profit earned prior to the incorporation of the company.
โ Interim Dividend may be declared after the Board has considered the Interim financial statements
for the period for which Interim Dividend is to be declared, after taking into account depreciation for
the full year and arrears of depreciation, appropriations and transfers to statutory reserves, taxation,
Dividend at the contracted rate on preference shares and transfer to reserves as per provisions of
the Companies (Transfer of Profits to Reserves) Rules, 1975.
Important Note โ Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures โ online & in Pen Drive/ DVD โ at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below โ
For any questions Request A Call Back
SS3--secretarial standards on dividend
The salient features of this standard are:
โ Dividend can be declared out of free reserves and surplus in the profit and loss account of the
company. However, dividend should not be declared out of the Securities Premium Account or the
Capital Redemption Reserve Account or Revaluation Reserve or Amalgamation Reserve or out of
profit on reissue of forfeited shares or out of profit earned prior to the incorporation of the company.
โ Interim Dividend may be declared after the Board has considered the Interim financial statements
for the period for which Interim Dividend is to be declared, after taking into account depreciation for
the full year and arrears of depreciation, appropriations and transfers to statutory reserves, taxation,
Dividend at the contracted rate on preference shares and transfer to reserves as per provisions of
the Companies (Transfer of Profits to Reserves) Rules, 1975.
โ Interim Dividend should not be declared out of reserves.
โ Dividend may be paid by cash, cheque, qarrent, demand draft, pay order or directly through ECS.
โ Calls in arrears and any other sum due from a member may be adjusted against Dividend payable
to the member.
โ Dividend, whether interim or final, once declared becomes a debt and should not be revoked.
โ Unpaid/Unclaimed Dividend should be transferred to the Investor Education and Protection Fund on
expiry of seven years from the date on which such Dividends were transferred to unpaid Dividend
Account after giving individual intimation to the claimant shareholders.
โ Any interest earned on unpaid Dividend Account should also be transferred to Investor Education
and Protection Fund.
โ Paid Dividend warrant instruments returned by the Bank and Dividend Registers should be
preserved for a period of eight years.
โ The Balance Sheet, Annual Report and Annual Return of the company should make separate
disclosures of the amount of Dividend lying in the unpaid or unclaimed Dividend account for seven
years. Annual Return and Annual Report should also disclose the amount transferred to Investor
Education and Protection Fund.
Thanks