Corporate Law

01

PYQ 2025

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secretarial-practice ID: maharash

Answer the following question: Explain the procedure for allotment of shares.

Correct Option:

(1)

02

PYQ 2025

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secretarial-practice ID: maharash

Justify the following statement: Company has to fulfill certain provisions relating to issue of circular or advertisement.

03

PYQ 2025

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secretarial-practice ID: maharash

Answer in brief: State the provisions relating to Bonus Shares.

04

PYQ 2025

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secretarial-practice ID: maharash

Distinguish between: Final Dividend and Interim Dividend

Correct Option:

(1)

The main difference relates to the timing and the declaring authority. A final dividend is declared at the end of a financial year by the shareholders in an AGM, whereas an interim dividend is declared in the middle of a financial year by the Board of Directors. Basis of Distinction Final Dividend Interim Dividend Meaning A dividend declared and paid after the close of the financial year and finalization of accounts. A dividend declared and paid between two Annual General Meetings (i.e., during the financial year). Declaring Authority It is recommended by the Board of Directors and declared by the shareholders at the AGM. It is both declared and paid by the Board of Directors in a Board Meeting. Timing Declared at the Annual General Meeting. Declared anytime during the financial year. Source of Profits Paid out of the profits of the financial year after preparing the final accounts. Paid out of the profits of the current year before the final accounts are prepared. Rate The rate of final dividend is usually higher than the interim dividend. The rate is generally lower as it is based on estimated profits.

Chapter Questions
4 MCQs

Basis of Distinction	Final Dividend	Interim Dividend
Meaning	A dividend declared and paid after the close of the financial year and finalization of accounts.	A dividend declared and paid between two Annual General Meetings (i.e., during the financial year).
Declaring Authority	It is recommended by the Board of Directors and declared by the shareholders at the AGM.	It is both declared and paid by the Board of Directors in a Board Meeting.
Timing	Declared at the Annual General Meeting.	Declared anytime during the financial year.
Source of Profits	Paid out of the profits of the financial year after preparing the final accounts.	Paid out of the profits of the current year before the final accounts are prepared.
Rate	The rate of final dividend is usually higher than the interim dividend.	The rate is generally lower as it is based on estimated profits.