As the financial year ended on March 31, investors in the stock market turned their attention to the audited financial results of the companies. Every investor has an eye on which companies will pay how much dividend. Dividends are the amount of profit that a company makes to shareholders. This dividend is paid per share on the face value of the shares. Dividends are not distributed to shareholders unless they are approved by the annual general meeting of all shareholders after the board of directors declares the dividend at its meeting. But the distribution of interim dividends does not require stakeholder approval. However, this approval is required for the final dividend. The dividend must be received by the shareholder within thirty days of its approval by the general meeting. Companies are obliged to deposit the unpaid dividend of the unpaid dividend in a separate account within seven days after that thirty days. If the company does not distribute the dividend to the shareholders within thirty days of declaring the dividend, the director of the company can be fined per day and punished up to three years.
When a dividend is declared, the company is required to report to the stock exchange on which it is listed. According to the agreement with the stock exchange, the record date required for the distribution of dividends is required. Eligible shareholders must be registered with the company before this record date to receive dividends. The market value of the stock before this record date is called the cum-dividend value, while the market price of the stock after the record date is called the X-dividend value. Unpaid or unpaid checks due to non-disclosure of changed address, death of shareholder, incorrect bank account number or non-issuance of bank account number etc. The unpaid dividend remaining with the company is credited to a separate account. This amount is credited to this account for a maximum of seven years. In these seven years, the shareholder can claim his dividends only from the companies. But after seven years, the companies are obliged to deposit the amount in the Investor Education and Protection Fund.
(The author is an investor advisor)