New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    What must a company do with the amount of the dividend,

    including interim dividend, once it is declared?
    A Deposit the amount of the dividend in the company's general account within five days from the date of declaration Correct Answer Incorrect Answer
    B Transfer the dividend amount to the shareholders' accounts within five days from the date of declaration Correct Answer Incorrect Answer
    C Deposit the amount of the dividend in a scheduled bank in a separate account within five days from the date of declaration Correct Answer Incorrect Answer
    D Allocate the dividend amount for future investments within five days from the date of declaration Correct Answer Incorrect Answer
    E Distribute the dividend amount to all eligible shareholders within five days from the date of declaration Correct Answer Incorrect Answer

    Solution

    Section 123. Declaration of dividend: (4) The amount of the dividend, including interim dividend, shall be deposited in a scheduled bank in a separate account within five days from the date of declaration of such dividend.

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