Alex limited is facing loss in business during the financial year 2022-2023. In the immediatepreceding three financial years, the company had declared dividend at the rate of 7%, 11%and 12% respectively. The Board of Directors has decided to declare 12% interim dividend forthe current financial year atleast to be in par with the immediate preceding year. Is the act ofthe Board of Directors valid?

A majority of the board of directors is sufficient to declare stock dividends.Group of answer choicesTrueFalse

The date a board of directors votes to pay a dividend is called the

When the dividend is declared at the Annual General Meeting of the company, it is known as …. (a) Final Dividend (b) Interim Dividend (c) Dividend on preference shares (d) Scrip Divided (2) Amount to be transferred to reserves out of profits before any declaration of dividend is __________ (a) 5% (b) 7.5% (c) 10% (d) At the discretion of the company. (3) The Board of Directors of Vidyut Limited are contemplating to declare interim dividend in the last week of July, 2022 but the company has incurred loss during the current financial year up to the end of June, 2022. However, it is noted that during the previous five financial years i.e., 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22, the company had declared dividend at the rate of 8%, 9%, 12%, 11% and 10% respectively. Advise the Board as to the maximum rate at which they can declare interim dividend despite incurring loss during the current financial year. (a) Maximum at the rate of 10%. (b) Maximum at the rate of 11%. (c) Maximum at the rate of 10.5%. (d) Maximum at the rate of 11.5%. (4) The amount accumulated in the Investor Education and Protection Funds shall not be used for: (a) Refunds in respect of unclaimed dividends, matured deposits, matured debentures, application money due for refund and interest thereon. (b) Reimbursement of legal expenses incurred in pursuing class action suits under section 37 and 245. QUESTIONS AND ANSWERS

The board of directors of a stock corporation may declare dividends out of the unrestricted retained earnings which shall be payable in cash, property, or in stock to all stockholders on the basis of outstanding stock held by them.Group of answer choicesTrueFalse

Alpha Herbals, a Section 8 company is planning to declare dividend in the Annual GeneralMeeting for the Financial Year ended 31-03-2023. Mr. Chopra is holding 800 equity shares ason date. State whether the act of the company is according to the provisions of the CompaniesAct, 2013