Rough Draft for partial fulfilment of Corporate Law-I

On
DIVIDEND AND ITS IMPORTANCE:
A CRITICAL ANALYSIS

Submitted To:Mrs. Nandita. S. Jha

Faculty of Corporate Law -I

Submitted By: Adhish Prasad

Roll No. 904
4th Year B.A., LL.B. (Hons)

INTRODUCTION

The word "dividend" has origin from the Latin word dividendum. It means a thing to be
divided. Every investor is aware that dividend is nothing but profits earned by the company
and divided amongst the shareholders in proportion to the amount paid up shares held by
them. Simply stated it is a return on investment made by the shareholders. Section
2(35) of Companies Act, 2013 (Act for short) defines the term as including any interim
dividend. No exact definition has been given in the Act. Dividend is generally defined as a
pro-rata share in an amount to be distributed or a sum of money paid to the shareholders of a
corporation out of its earnings. Dividend is paid by a company to its shareholders on a
particular date (book closure date) either out of profits or out of reserves. A company may, if
so authorised by its Articles of association, pay dividends in proportion to the amount paidup
on each share

AIMS AND OBJECTIVE1. To examine the dividend and find out its advantages and disadvantages
2. To find out the deceleration and payment of dividend.

HYPOTHESISDividend is a return on the share capital subscribed for and to its shareholders by a company.

RESEARCH METHODOLOGYResearcher shall emphasize and use the doctrinal method to prepare this project topic.

SOURCES OF DATA-

PRIMARY SOURCES:-

SECONDARY SOURCES:-

1. The Companies Act, 2013

1. Books on Corporate Law

2. Websites
3. Journal
4. Magazines

TENTATIVE CHAPTERISATION1)
2)
3)
4)
5)

Introduction
Different Types Of Dividend
Deceleration And Payment Of Dividend
Importance
Critical Analysis

BIBLIOGRAPHY
BOOKS:

Dr. Rega Surya Rao Lectures On Company Law, 2nd Edition, Asia Law House

Publication
G.K. Kapoor & Sanjay Dhamija Company Law, 19th Edition, Taxman Publication
Avtar Singh Company Law, 16th Edition, Eastern Book Co. Publication

WEBSITES.
1.
2.
3.
4.

http://taxguru.in
http://www.caclubindia.com
https://www.taxmanagementindia.com
www.legalserviceindia.com