Book Closure

Example

A company announces a dividend and sets the book closure date for June 30. Only shareholders who are on the register by that date will receive the dividend payment.

Key points

• Book closure is the period when a company closes its shareholder register to determine eligibility for dividends or other benefits.

• Share transfers are halted during this period to ensure accurate records.

• Only shareholders registered by the book closure date are entitled to the benefits.

Quick Answers to Curious Questions

Why is the book closure date important?

It ensures that only shareholders on the register by the specified date receive dividends or other corporate benefits.

What happens to share transfers during the book closure period?

Share transfers are halted to maintain an accurate record of eligible shareholders.

How does book closure affect investors?

Investors must ensure they are registered as shareholders by the book closure date to receive the associated benefits.