Can You Write Short Note On The Following: 1. Common Seal. 2. Dividend. 3. Surrender Value.

1. Common seal. Every company must have a common seal with its registered name engraved there is legible letters. It acts as the official signature of the company. Regulations governing the use and custody of the seal are laid down in the articles of association. It is generally to be used by the authority of the directors. It is not necessary to use it on all documents But the seal is required on documents when demanded by the company ordinance or articles of association i.e. debentures, share certificate or share warrant.

2. Dividend. A dividend is that portion of the companies' net profit which is distributed among the shareholders in proportion to the numbers of shares holding. It is first declared at the board of directors meeting which is finally approved by share holders at the annual general meeting. Until a dividend is declared, no share holders can claim on the capital he has invested in the company. It must be paid out of the profits of the company. The directors are empowered to transfer some portion of profits to reserve fund before recommending a dividend.

3. Surrender Value. The surrender value is the amount which the insurance company is prepared to pay to insured person if he finds it impossible to continue the payment of further premium on a policy. A policy will be acquired surrender value only after if has been run for at least three years. This value is based on the total premium paid by the policy holder up to date. Not all the premium paid by the insured is returned by the company while calculated the surrender value. So it is generally expressed as the person page of the premium paid.

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