I need your suggestion w.r.t payment of dividend.?

Question

I need your suggestion w.r.t payment of dividend.

A Listed Company, having around 250 shareholders is going to declare

a dividend of Re.0.10 per equity share of Rs.10 each.

For this purpose, the company need to send dividend warrant to

shareholders and the cost involved on one such warrant is Rs.20/-.

Now the point of confusion is that, is it necessary to send dividend

warrant to all the shareholders, even to those holding 1 share and

the dividend amount comes to 10 paisa. (Assume that the shareholders

doesnot give mandate for the payment of dividend through electronic

account transfer.

Answer 1

A listed company with only 250 shareholders? Which exchange is it listed?

Regardless you need to pay the dividends even if the costs are highter than the acutal dividend.