Never Miss Points in DIVIDEND Chapter---
1. Interim dividend is proposed as well as declared by board
2. Any amount can be transferred to reserves before declaration of dividend
3. Bonus shares and dividend are not substitutes i.e. bonus share cannot be issued in lieu of dividend
4. Default in repayment of deposits and interest thereon or only DEPOSITS till such failure continues, leads to prohibition of Declaration of EQUITY dividend
5. RULE 3 SUB RULE 5(set off losses and dep not provided for) has been omitted from rule and added as proviso to sec 123
6. OR is required for revocation of dividend once declared. Board will be justified in revocation of dividend in case its been illegally declared or intervening events leading to heavy losses and its advisable to conserve the remaining assets
7. Interest is 18 %p.a in case of late payment of dividend. No shareholder can enforce higher rate even through court
8. Old sec 205C clarifies no claim will be entertained after 7 years while section 125(3) say that claim will be entertained even after 7 years and amount will be refunded back
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