CA Inter P2 · Chapter 7 · Question 2 of 9
Under section 123(4), the amount of dividend declared, including interim dividend, must be deposited in a separate account with a scheduled bank within:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Five days from the date of declaration
Explanation
Section 123(4) requires the amount of dividend, including interim dividend, to be deposited in a scheduled bank in a separate account within five days from the date of declaration. Payment to shareholders is then made from this account.
More Declaration and Payment of Dividend MCQs
- Q4Under section 124(5), money in the Unpaid Dividend Account that remains unpaid or unclaimed must be transferred, with interest accrued, to…
- Q5Emerald Ltd declared dividends of 10%, 12% and 8% in the three immediately preceding financial years. It has incurred a loss in the…
- Q6Under section 123(6), a company that has failed to comply with the provisions of sections 73 and 74 (acceptance and repayment of deposits)…
- Q7Under section 127, a director is NOT liable for failure to pay a declared dividend within thirty days in which of the following cases?
- Q8Under the provisos to section 123(1), before declaring dividend for the current financial year a company must: