Dividend cannot be paid on calls i.e. in advance. - Vidyadip

Question

Dividend cannot be paid on calls i.e. in advance.

✓

Answer

Dividend is an unconditional payment made out of company’s profit.
It is paid out of current profits or profits of the previous financial year.
Dividend once approved and declare by shareholders cannot be cancelled.
Once the Annual Accounts of previous year has been approved in AGM the dividend of the previous year cannot be declared.
Thus, it is rightly said that dividend cannot be paid on calls i.e. in advance.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "Justify the following statement." from Dividend and Interest→Dividend and Interest — all question types→Secretarial Practice STD 12 Commerce / Arts question papers→Maharashtra Board STD 12 Commerce / Arts question papers→Maharashtra Board question paper generator→

Similar questions

A member of a public company can transfer shares.

Deposits are repaid on maturity.

Listed Company has to follow additional guidelines on dividend matters.

To issue Bonus shares a company has to fulfil certain provisions.

Equity shareholders are real owners and controllers of the company.

There are various factors affecting the requirement of working capital.

Capital Market facilitates the mobilization of funds.

There are various factors affecting the requirements of fixed capital.

The company has to fulfill general principles/rules for allotment of shares.

Approval of members is not needed for Interim Dividends.