Guidance Note on Dividend

 About the book:

Dividend is a return on the investment made in the share capital of a company and is a direct means of rewarding the shareholders for investing in the company.  Dividend is one of the financial parameters on which the investors gauge a company’s performance.

Various principles have been laid down in the Secretarial Standard on Dividend (SS-3) which the corporate sector is expected to adhere to while ascertaining the amount available for distribution as dividend, declaring dividend, ascertaining the entitlement to Dividend and making payment to the registered holders of shares.  Principles have also been laid down with respect to declaration and payment of Interim Dividend, treatment of unpaid Dividend, revocation of Dividend as well as the preservation of Dividend warrants, maintenance of Dividend registers and disclosure requirements. 

The Secretarial Standard on Dividend has been supplemented by a Guidance Note on Dividend.  While the Secretarial Standard lays down the principles, the Guidance Note deals with procedures, interpretation and practical aspects in connection with declaration and payment of Dividend in order to equip the members and others to comply with those principles. 

This Guidance note is immensely beneficial not only to members to comply with the Secretarial Standard on Dividend but also companies in adhering to the norms of good Corporate Governance.