DIVIDEND POLICY LEGAL AND PROCEDURAL ASPECTS

PRESENTED BY MOHD NAZIM

DEFINATION A company's stance on whether it will pay out profits as dividends or keep them as retained earnings. If the company decides to issue dividends, the policy will outline whether or not the dividends will be issued on an on-going basis, or if the dividend pay-out will be infrequent.

BOARD RESOLUTION:
the dividend decision is the prerogative of board of director. Hence the board of director should in formal meeting resolve to pay the dividend.

SHARE HOLDER APPROVAL:

the resolution of board of directors to pay the dividend has to be approved by the shareholders in annual general meeting.

RECORD DATE :

the dividend is payable shareholder whose name appear in register of members on the record date.

DIVIDEND PAYMENT: once the divided declaration has been made dividend warrant , must be posted within 3o days within a period of 7 days the expiry of 30 days, unpaid dividend must be transferred to a special account open with a scheduled bank.

THANKSSSSSSSSSSSSSSSSSSSSSSSSS