TITLE OF DIVIDEND :
Dividend is a part of profit
which provides to shareholders as a premium for his investment. Generally
company provide dividend to its registered shareholders. There may arise certain
situation when shares are transferred in exchange of law full consideration but
the transferee is not registered himself in the books of company. In such a
situation the transferor will hold the dividend in his possession. But
according to sec 27(1) security contract (regulation) act 1956 if the transferee
submits transfer deed and along with all other required documents within 15
days to the company from the date on which dividend become due the transferee
will receive dividend instead of transferor.
The calculation
of 15 days will exclude the following days:
1. When original transferee died and time taken by
legal representatives to establish his claim.
2. When transfer deed is loosed by theft or any
other cause beyond the control of the transferee by the actual time taken for
replacement thereof.
3. Delay in lodging required document due to postal
delivery.
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