Some
legal provisions for dividend payment in the Nepal. Nepal company’s Act 1997
makes these provisions may be seen as- under. Section 2(m) states that bonus
share (stock dividend) mean share issued in the form of additional shares to
shareholders by capitalizing the surplus from the reserve fund or profit of the
company. The term also indicates an increase in the paid up values of the
shares after capitalizing the surplus from the reserve fund or the profit of
the company. The term also indicates an increase in the paid up values of the
shares after capitalizing surplus from the reserve find or the profit of the
company. The term also indicates an increase in the paid up values of the
shares after capitalizing surplus from the reserve fund or the profit of the
company. The term also indicates an increase in the paid up values of the
shares after capitalizing surplus or reserve funds.
Section
47 has prohibited company from purchasing, its own share. This section states
that no company shall purchase its own shares or supply loans against the
security of its own shares.
Section
137 bonus share and subsection (1) states that the company must inform the
office before issuing bonus shares. Under subsection (1) this may be done only
according to a special resolution passed by the general meeting.
Section
140 dividends and subsequent of this section as follows.
Sub
section (1) states that except in the following circumstances, dividends shall
be distributed among the shareholders
within 45 days from the date of decision to distributed them.
·
In case of any law forbids the distribution of
dividends.
·
In case of the right to dividend is disputed.
·
In case of dividend cannot be distributed within
the time limit mentioned above owing, the circumstances beyond any one’s
control and without any fault on the part of the company.
Sub
section (2)in case dividends are not distributed with the time limit, mentioned
in sub section (1) this will be done by adding interest at the prescribed rate
sub section (3) states only the person who has registered in the register of
existing shareholders at the time of
declaring the dividend shall be entitled to it.
Starting the day with a refreshing mountain view
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