Dividends and Corporate Finance Quiz

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Questions and Answers

When is the final dividend paid for all companies?

Within thirty days of the end of the financial year
Within thirty days of the approval of annual financial statements
Within thirty days of the date of annual general meeting (correct)
Within thirty days of the date of directors meeting

What is the purpose of an interim dividend?

To provide a dividend if the company's profits increase
To provide a dividend in addition to the final dividend
To provide a dividend if the annual financial statements are not approved
To provide a dividend before the end of the year (correct)

Who approves the amount of final dividend?

Members in annual general meeting (correct)
Shareholders in a special meeting
Board of directors
Company executives

When must the interim dividend be paid if share transfer books were not closed for this purpose?

Within 30 days of the date of directors meeting (D) Signup and view all the answers

What is the restriction on declaration of dividend according to Sec 240 o?

No dividend shall exceed the amount recommended by the board (B) Signup and view all the answers

Who appoints the first auditor of a company and within what timeframe?

The first auditor of a company is appointed by the board of directors within 90 days from the date of incorporation. Signup and view all the answers

When does the first auditor appointed by the board retire?

The first auditor appointed by the board retires on the date of the first annual general meeting (AGM) or statutory meeting. Signup and view all the answers

How is the subsequent auditor of a company proposed and appointed?

The subsequent auditor is proposed by the board of directors or shareholders with at least 10% shareholding and appointed at every AGM. Their remuneration is determined in the AGM. Signup and view all the answers

Under what circumstances would a casual vacancy for an auditor remain unfilled, and what action is taken in such a case?

A casual vacancy for an auditor remains unfilled if not appointed within 30 days, or if the appointed auditor is unwilling to perform. In such cases, the commission shall appoint and fix the remuneration for the auditor. Signup and view all the answers

What are the provisions for the retirement and reappointment of auditors in a company?

The auditors hold office until the next AGM and can be reappointed. The first auditor not appointed within 90 days of incorporation or subsequent auditor not appointed at AGM have specific provisions for appointment and filling of vacancies. Signup and view all the answers