Drug Companies and Ethics Essay Example for Free

Drug Companies and Ethics Essay After researching pharmaceutical companies, I quickly realized this is a very controversial topic. I’m not certain anyone in many of these companies have very many moral standards. Drug companies seemed to be very profitable from the researchers to the drug reps that deliver â€Å"gifts† and sample meds to the doctor’s offices that push their medications. Many activists will argue that drug companies put themselves before human rights. Companies violate health related human rights by prioritizing profits over peoples access to essential medications. Many large scale drug companies argue that they are proudly taking the stakeholder approach and striving to promote fair labor practices and non-discrimination in the workplace. They will also argue that the reason medication prices are so high is because of all of the research that is involved in developing a medication, while activists argue that meds are so expenisve due to the marketing they put into a drug in the first several years. I found researching the pharmaceutical companies to be very interesting. It was very hard to get past the negative controversies and debates to find anything positive about any one company. However, I finally found one company in particular, Merck Co. that has taken responsibility and turned around some negative press by developing a program that helps thousands of people. Lynch 2 Merck is one of the largest and most profitable drug companies in the world, but they have also been a leader in a donation program that helps Third World countries in Africa, South America and Yemen since the 1980’s. Merck became one of the first drug companies to become socially responsible by donating to countries that could not afford the essential medications needed to prevent a disease that caused something as severe as blindness in hundreds of people. Their medication, Mectizan, taken annually can alleviate and has ultimately eliminated this disease in some countries. Since the 80’s when Merck started this program many other drug companies have jumped on board. Companies such as Pfizer, Johnson Johnson and GlaxoSmithKline have all started taking social responsibility and are now donating through programs to these Third World countries. These companies are donating medications that our country takes for granted and that we may not need in our everyday life. Johnson Johnson donates a medication that rids their children of intestinal parasites while Pfizer donates Zithromax to eliminate trachoma. If it were not for these companies donating such large quantities of these drugs every year, millions of lives would be lost. I find it very interesting that the drug companies that many people complain about and that make millions a year in profits seem to also be able to do such wonderful things in these countries. I found many articles that complained about the CEO’s and about the terrible morals that some of these pharmaceutical companies are known for. I think that when it comes to morals and ethics people see what they want to see. Drug companies have had a bad name for many years so you don’t see a lot of positive press and articles such as the one I found. It was actually refreshing to read about the dr ug companies that donate and the lives they save. Some of us may not agree with how these companies push their drugs into our doctor offices and we may even say that they do not practice great ethics, but it seems as if these companies are at least trying to keep a â€Å"good name.† I am certain that the people in these Third World countries are very grateful to the drug companies that donate because not only are these companies saving their lives but they are also saving the lives of their children.

Be Careful When You Sell an Existing eBusiness :: Sell Websites Buy Web Sites

Be Careful When You Sell an Existing eBusiness Reprinted with permission of VotanWeb.com You should never provide a potential buyer with sketchy or incomplete information – after that you’ll play catch up the entire time and the buyer will most likely lose trust in you. Once trust is lost, it is seldom regained. It is not wise to assume you will sell your website fast, for all cash and for full price. Plan on being flexible somewhere and also plan on negotiating with any serious buyer. Don’t believe your own hype – a serious buyer certainly will not. Don’t waste your breath telling a buyer a website could be worth millions in a short period of time. Most serious website buyers will not pay for promise – unless their analysis indicates promise. It is self-defeating to believe that every piece of information you have is priceless and can’t be shared. If you will not share information then you will not sell your website. Of course, you should not share any information that truly is valuable until you have a serious buyer that can buy, has signed an NDA, and is moving forward with the purchase. Never waste your time with buyers that waste yours. For larger transactions, it is unwise to assume you will be able to handle all facets of the sale by yourself. The money you spend on attorneys and accountants could save you much more. Never turn over control to the buyer until you have signed contracts and the money in your account. You will need to use an escrow service to hold the website along with the buyer’s money while the transaction is in process. Don’t attempt to sell multiple copies of the same website under different domain names. You will find that all the money you earn will be spent on legal fees defending yourself from unhappy buyers.

Organization and Management Essay

Power and control are aspects which are common in many institutions. Organizations on the other hand are social institutions which operate to serve specific functions in society as well as their own development or growth and this makes it different from other entities such as the family (Eddy, 1983). Most organization’s concern is to expand in order to exceed other existing natural units as well as enhancing their performance through effective control (Bakke, 2005). As a result, these organizations require a formal and institutionalized distribution of penalties and rewards so that regulations, norms and orders that exist in these organizations are complied with. This also calls for control of participants so that these norms and regulations can effectively be carried out. In addition, different allocation of assignments of organizational tasks to various parties is required so that rewards on performance are granted to various deserving individuals and those who do not deserve these rewards on the other hand, are punished. This paper will focus on how power and control and operate at Engineering Product and the various possible implications that could occur on the part of employers and employees at Engineering Product. Power may also be viewed as a form of influence that an individual or organization may posses and the way that it is exerted on individuals and institutions in order to bring about desired results. These results could be positive or negative depending on the nature of power that an organization has. Power relates to the capacity of attaining the desired needs or wants as well as the stated objectives from organizations or individuals and in certain instances force may be applied. In addition, exercise of power may occur among individuals which could end up shaping or influencing the wants of an individual (Fairholm, 1993). It is evident that power and control exists at Engineering Product, a British Engineering firm. The firm has existed for a while how and since its restructuring in 1980’s it now posses three areas of business namely defense, automotive components and individual services. The restructuring also saw the expansion of the firm into other overseas business environments and as a result, the firm has majority of its employees working abroad with very few remaining in Britain. In other words, Engineering Product has managed to have its stronghold in international business by succeeding in the same. Its workforce is widely spread in Western Europe as well as North America. Majority of the workforce is seen in the automobile section of the firm which employs about 60% of the total workforce. This division is also involved with various multinational companies that produce cars. However its concentration is less in the UK than in any other country and this means that less sales are made from the division that exists in Britain since it has a small proportion of workforce employed in the division. Larger proportion of sales as well as the workforce is found in continental Europe which consists of France, Germany and Spain. Automotive division has mostly been shaped by the demands that are created by its customers and this has also affected the way it carries out its operations and management in the international business as well as its workforce. These customers have also standardized their means of working practices and production by means of carrying out â€Å"best practices† in various sites, hence forcing management to produce similar products for instance cars that are similar to others internationally. There are various forms of power that exist in organizations namely coercive power, normative power, utilitarian power, referent power, expert power, reward power among others. Coercive power involves forcing other people to comply with one’s rules and regulations. It also relates to the capacity at which an individual or organization is able to issue punishments to those individuals or employees who fail to follow demands or requests that are proposed (Sims, 2002). Kipnis notes that coercive power is mainly exercised by individuals who rely on their verbal facility, physical strength or in other circumstances being able to withhold emotional support from other people or grant it. As a result, an individual is provided with the probable means to issues such as bully, physical harm, or lack of love among others. In organizations, the most common forms of coercive power include the ability to demote, fire or transfer subordinates. As a result of coercive power, a dyfunctioning process in groups has been evident and these processes include reciprocal conflict and anger, reactions, self-blame, rejection and dislike, revolutionary coalitions just to mention (Streatfield, 2001). The most common outcome of coercive power on the past of employees is resistance. Reward power on the other hand concerns employee rewards based on their performances and de-motivation occurs in cases whereby deserving employees are not rewarded (Houser & Domokos, 2004). Engineering Product firm has acquired most of its power and control through the integration efforts that it has managed to create in the global business and this international integration has its origin from the demands that the Engineering Product’s customers present. The central task of integration mostly lies with the HQ of the firm’s division. The firm has also carried out its integration processes by creating various management structures mostly at the international level and this is mostly done with the aim of bringing together all the managers who work in various groups and branches as well as enabling effective information exchange that may exist between them. Therefore, it is the division at the HQ that exercises the central power as regards the various activities that exist at Engineering Product. Senior directors from the manufacturing sector at the Engineering products are brought together through ‘manufacturing councils’ that are operated by the division. This is carried out in order for these directors to be able to monitor and examine the various processes which might have been adopted in each of the existing plants. Moreover, the international college of Engineering which is based in Germany enables engineers to learn and develop on the new methods of manufacturing. International integration has also been enhanced by Engineering Product through the creation of cadre that involves international managers who are charged with the responsibility of carrying out various assignments in other countries besides their own. As a result, internal consultants have been established and they consist of managers responsible in the pioneering of new practices and these managers also have the permission to roam between plants as they attempt to adopt the practice. The firm also has a HR which has established a system that is able drive together various managers based at different sites in order to discuss and share common initiatives termed as ‘best practice’. As a result regular meetings are conducted by the HR specialists as they discuss the various implications that integration has on the personnel practice. In the past, the meetings have resulted in bringing about problem-solving techniques as means of establishing standardized results. The division of HQ ensures that plant managers are involved in sharing of the best practice by carrying out an operation in orders concerned with internal competition. The other form of power and control can be named in this case since the orders from customers are mainly placed at the division’s HQ and not the other plants. Again, it is the HQ that decides what orders should be received by what plants. As a result, the HQ has a little bit more leverage over the other actors that exist at the various plant levels and this means that these plants have to be dependent on HQ. Decisions that concern outsourcing are made at the division at HQ and it is them who decide what factors should supply their products to the various orders that are made by customers. Local customers on the other hand are supplied by local companies found in the various local markets. Concerning the various implications on employees and managers, the move that was established regarding standardization of production led to the generation of various opinions between plant managers and HQ focusing on the resulting in merits that may exist in a particular initiative for instance, performance-related pay (PRP) which has been established successfully in various plant divisions by the HQ. However, as per discussions from the meetings, it was found out that performance of the work force vary from one plant to another. However, he opted to use sanctions as a means of imposing it ma through in order to bring about equal performance. The internal integration of Engineering Product is mostly as a result of the powers that the firm gives to HQ as well as internal competition. Plant managers are at an obligation to comply with any wishes that may be established by HQ, such wishes may involve the means of labour management as well as nature of processes in production. Engineering products’ HR function has also been able to play both strategic and administrative roles hence increasing the level of profile function. In addition, the HR function has also been able to create several structures that enhance contact between plant managers who are based at various plant divisions. However, tension was encountered by the central function of HR concerned the creation of a balance between variation found in plants in order to reflect local factors as well as standardization of practices. As seen from the scenario, he was ready to impose sanctions so that standardization of products is enhanced across borders. The differences in the various practices existed mainly because of the various changes that occurred in the nature of institutions, law and the national cultures and this can viewed under the way the performance – related pay was conducted as well as employee representation. Another impact is that as a result of the central power that HQ posses, American plants do not have any formal structures since the law does not allow management to recognize various unions and the unions on the other have do not have powers since they are not influential as regards the recognition of management (Sinsson, Edwards & Ferner, 1993). Managers on the other hand experience positive impacts as a result of international integration since the hierarchy in management is widespread and not limited to one particular country. Senior positions are filled on merit and little importance is placed on nationality. Consequently mangers are faced with a lot of opportunities a head of them both domestically and internationally hence allowing managers to become geographically mobile. However, this effect may view differently since some managers may not find it suitable to perform assignments abroad (Miner, 2002). On the other hand, the autonomy of managers is greatly reduced since they are forced to company with the established rules and regulations of HQ and this could end up to resistance from these managers. The policy-making bodies at Engineering Product help in the formulation of policies by various plant managers. International integration has also impacted on employees shown by the increased competition among plants hence the HQ is able to establish comparisons in relation to performance. As a result, employees bargaining power is reduced in each plant hence creating resistance to change among unions and employees. Another implication is in relation to the way these employees are exposed to various working practices found in different countries. In conclusion, it is ended that the power and control that Engineering Product has is that of coercive power because the firm forces its wishes on various plants and people even though it has managed to establish a successful international integration.

Dividend And Retention Policies Finance Essay - Free Essay Example

Sample details Pages: 13 Words: 3930 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Tata Steel Ltd is the worlds 10th largest steel company and the worlds 2nd most geographically diversified steel producer. The company is a diversified steel producer with major operations in India, Europe and South East Asia. They have manufacturing units in 26 countries and a presence in 50 European and Asian markets. Don’t waste time! Our writers will create an original "Dividend And Retention Policies Finance Essay" essay for you Create order The company together with their subsidiaries, engages in the manufacture and sale of steel products in India and internationally. They offer hot and cold rolled coils and sheets, galvanized sheets, tubes, wire rods, construction rebars and bearings. The company also involves in prospecting, discovering, and mining iron ore, coal, ferro alloys, and other minerals; designing and manufacturing plants and equipment for steel, oil and natural gas, energy and power, mining, railways, ports, aviation, and space industries; and agricultural implements. Further, they offers alumina, dolomite, and monolithic refractories, as well as silica refractories for coke ovens and the glass industry; manufactures bricks; sponge iron lumps and fines; and rolls for applications in integrated steel plants, power plants, and government mint, as well as paper, textile, and food processing sectors. Tata Steels operations are grouped under six Strategic Business Units include Bearings Division, Ferro Alloys an d Minerals Division, Agrico Division, Tata Growth Shop (TGS), Tubes Division and Wire Division. They have introduced several branded steel products, including Tata Steelium (the worlds first branded Cold Rolled Steel), Tata Shaktee (Galvanised Corrugated Sheets), Tata Tiscon (rebars), Tata Pipes, Tata Bearings, Tata Structural, Tata Agrico (hand tools and implements) and Tata Wiron (galvanised wire products). Tata Steel Ltd was incorporated in the year 1907 with the name Tata Iron Steel Company Ltd. In the year 1911, the company commenced the operations of the first Blast Furnace or the A Blast Furnace. In December 2, 1911, the fist collieries were obtained and the first cast of pig iron was produced. In they ear 1912, the first ingot of steel rolled out of the Sakchi Plant and in October 1912, the Bar Mills started their commercial production. Also, the B Blast Furnace became operational during the year. In the year 1918, Indias first steel (coke) plant was established in Jamshedp ur. In the year 1925, the New Rail Mill, Merchant Mill and Sheet Mill went into operation. In the year 1931, they opened a apprentice shop. In the year 1941, they started manufacture of special steel for war purpose. They produced a wide variety of special steels required for defense purposes including armoured cars called Tatanagars. In the year 1943, Howrah Bridge was constructed from steel supplied by the company. In the year 1955, the company signed an agreement with Kaiser Engineers for two million tonne expansion programme. In the year 1980, they started the first phase of the four-phased modernisation programme. In the year 1984, the company introduced BOF steelmaking, which could produce liquid steel in forty five minutes when it took the old open hearth furnaces, close to five hundred under the first phase of modernisation. During the year 1984-85, Indian Tubes Company Ltd was amalgamated with the company. The second phase of modernisation was in the year 1988, which concen trated largely on the iron-making area. During the year 1993-94, the company commissioned the Hot Strip Mill with the capacity of one million tonne per annum which was the companys third modernisation programme. In the year 2000, the company inaugurated the 1.2 million tonnes Cold Rolling Mill Complex as a first step towards expansion and modernisation. In January 2, 2004, The Indian Steel Wire Products Company was acquired at Jamshedpur. In June 4, 2005, the company signed an MoU for setting up a five-million tonne per annum Greenfield integrated steel plant in the Jagdalpur district of Chhattisgarh. In July 2005, they formed a joint venture with Blue Scope Steel Ltd, Australia for quoted steel manufacturing facility. In July 21, 2005, the company acquired stakes in the Australian coal mines. In August 2005, the company set up Met coke manufacturing facility in West Bengal. In September 19, 2005, the company signed an MoU with the Government of Jharkhand for setting up a 12-million tonnes per annum Greenfield integrated steel plant in the Manoharpur and Chandil areas of Jharkhand. In December 14, 2005, they signed definite agreement with Cementhai Holding Company to acquire shares and invest equity in the Milennium Steel, Thailand. Also, the name of the company was changed from Tata Iron Steel Company Ltd to Tata Steel Ltd with effect from May 19, 2005. In the year 2006, the company inaugurated Indias first automated Jigging and Hydrocyclone Plant, with a 1.6 MTPA throughput, at Noamundi Iron Mines. They commenced the work on Ferro Chrome Plant by acquiring Rawnet Ferrous Industries Pvt Ltd, in Orissa, a Ferro Alloys plant with a capacity of 50,000 tpa of high carbon chrome. They set up a Joint Venture Company with Larsen and Toubro Ltd for developing an all weather modern deep water port in the state of Orissa on the Eastern Coast of India. Tata NYK Shipping Pte Ltd, a joint venture shipping company between the company and Nippon Yusen Kabushiki Kaisha was set up to cater to dry and break bulk cargo and also the shipping activities. In August 7, 2006, the company inaugurated the Roll Forming and Pre-Engineered Building Facilities of Tata Bluescope Ltd at Pune. In April 2, 2007, the company acquired Corus Europes second largest steel producer for consideration of USD 12 Billion, which made Tata Steel the sixth largest steel producer globally and the second-most geographically diversified steel producer in the world. They also entered into an agreement for acquiring controlling equity stake in two rolling mills located in Haiphorg, Vietnam. Also, they signed a joint venture agreement with Riversdale Mining for Mozambique coal project. In December 2007, the company and SODEMI (state owned company for mineral development) entered into joint venture agreement for the development of Mount Nimba Iron ore deposits in Ivory Coast (West Africa). In January 2008, the company and the members of the Al Bahja Group, a leading business house of Oman entered into a Joint Venture Agreement for the development of the Uyun Limestone deposits at Salalah in the Sultanate of Oman. Also, they entered an agreement with Steel Authority of India Ltd (SAIL) to establish a 50:50 joint venture company for coal mining in India. In February 2008, they opened their fourth retail outlet, steeljunction at Behala. During the year 2008-09, the company completed the expansion of crude steel capacity to 6.8 mtpa as part of their expansion programme. Also, they commissioned Sinter Plant No. 4, the H Blast Furnace and the Continuous Caster No. 3 at LD Shop-1 during this expansion phase. In June 16, 2008, the company and their wholly owned subsidiary, Rawmet Ferrous Industries Ltd entered into an agreement with Jasper Industries Pvt Ltd for set up a coal based power plant of 2 X 67.5 MW capacity in Orissa. In September 2008, the company through their subsidiaries signed a Heads of Agreement memorandum with New Millennium Capital Corporation (NML), a Ca nadian listed mining company aiming to develop iron ore projects in Northern Quebec, Labrador and Newfoundland provinces. As part of the restructuring of the overseas holdings, the company transferred their stake in Tata Steel (Thailand) Public Company Ltd to Tata Steel Global Holdings Pte Ltd. The company subscribed 35,88,022 rights shares of Tayo Rolls Ltd and consequently, Tayo Rolls Ltd has become a subsidiary of the Company with effect from December 01, 2008. In October 22, 2009, the company and Mineral and Metal Trading Company Ltd signed an agreement to establish a 74:26 joint venture company for acquiring, development and operation of mines and processing of minerals and metals. During the financial year 2009-10, Hooghly Met Coke and Power Company Ltd was amalgamated with the company with effect from April 1, 2009. The construction of a warehousing shed and a building for a power receiving sub-station had started at one corner of the plant area. They increased the production capacity of Crude Steel from 61,10,000 tonnes to 68,00,000 tonnes, Saleable Steel from 58,40,000 tonnes to 65,00,000 tonnes and Welded Steel Tubes from 2,84,000 tonnes to 2,88,000 tonnes. In October 2009, the company entered into agreement with MMTC Limited, a Central Government undertaking and established a joint venture company for acquiring, developing and operating mines and processing of minerals and metals. In November 2009, they signed a Joint Venture Agreement with NML, to advance the development of the DSO Project. In January 2010, the company entered into an MoU with NMDC Ltd, to explore the possibility of acquisition, exploration and development of mines, extraction and processing of minerals, setting up integrated steel plants and other businesses of mutual interest. In April 6, 2010, the company entered in an MoU with Nippon Steel Corporation (NSC), Japan for setting up a Continuous Annealing and Processing Line at Jamshedpur, India with 0.6 mtpa capacity. In June 2010 , the company subscribed to a private placement of Canadian $20 million by NML pursuant to which Tata Steel Global Minerals Holding Pte Ltd holds a 27.4% stake in NML. In June 2010, the company and Tata Metaliks Ltd entered into an MoU with the Government of Karnataka in June 2010 for setting up an integrated steel plant of 3 mtpa in Agadi and Boodagatti villages of Haveri District, Karnataka. In August 2010, the companys subsidiary Corus UK Ltd and Sahaviriya Steel Industries Public Company Ltd (SSI) signed an MOU which sets out the scope of a potential transaction whereby SSI would acquire from Corus the Teesside Cast Products (TCP) business in a transaction valued at approximately USD 500 million. Tinplate Company of India Ltd became a subsidiary of the company with effect from April 01, 2011, consequent to increase in the companys shareholding in the Tinplate Company of India Ltd from 42.88% to 59.45%. This increase is due to automatic and compulsory conversion of 3% fully conve rtible debentures of Rs 100 each held by the company into equity shares on April 01, 2011. In April 2011, the company and Krosaki Harima Corporation (KHC) signed definitive agreements to induct KHC as a strategic partner in Tata Refractories Ltd (TRL). Under this arrangement, KHC will acquire 51% equity stake out of TSLs current 77.46% stake in TRL. As per the scheme of amalgamation, Centennial Steel Company Ltd, a wholly owned subsidiary company was amalgamated with the Company with effect from September 27, 2011. In January 2012, the company secured a contract from Siemens Wind Power to supply 25,000 tones of profiled steel plate for wind towers. Tata Steel will deliver 25,000 tones of profiled plate (cut into the desired shape) between April and September 2012. The company is implementing an expansion project at Jamshedpur Works to increase its crude steel capacity from 6.8 million tonnes per annum to 9.7 million tonnes per annum. The facilities under this project are scheduled t o be completed in FY 2011-12. Simultaneously, the Company is implementing a few other major capital schemes at Jamshedpur which include Coke Plant Battery No. 11, Coke Dry Quenching at Coke Ovens Batteries 5, 6 7 and a new mill for producing Full Hard Cold Rolled (FHCR) coils. The company is also setting up a Continuous Annealing and Processing Line at Jamshedpur with a capacity of 0.6 mtpa under a joint venture company with Nippon Steel Corporation (NSC), Japan. The line will produce automotive cold rolled fl at products and address the needs of Indian automotive customers for highgrade cold rolled steel sheets. The preliminary work on the 6 mtpa greenfield steel plant at Kalinganagar, Odisha is in progress. DIVIDEND AND RETENTION POLICY OF Tata Steel Ltd. The firms dividend decision has in the last ten to fifteen years received considerable attention from financial analysts and academics.Divergent views have been expressed and it is understood that the controversy has not been resolved,although the lack of new authorship on the subject in resent times may lead one to conclude that tha debate is deadlocked. A dividend is a payment made by a company to its shareholders. A company can retain its profit for the purpose of re-investment in the business operations (known as retained earnings), or it can distribute the profit among its shareholders in the form of dividends. A dividend is not regarded as an expenditure; rather, it is considered a distribution of assets among shareholders. The majority of companies keep a component of their profits as retained earnings and distribute the rest as dividend. The different types of dividends include: Special dividend: Normally, public companies declare their dividends on a specific schedule; however, they also have the option to declare a dividend at any time. This type of dividend is referred to as a special dividend. Cash Dividends Firms distribute as cash dividends a certain percentage of annual earnings in payout rates. Ordnance The date of declaration It is the date a resolution to pay cash dividends to stockholders of record on a specific future date is approved by the board of directors. At that date the firm incurs a liability prompting the recognition of a short-term debt-Dividends Payable and the debit to either Retained Earnings or Cash Dividend Declared. The ex-dividend date It is the date the stock stops selling with dividends attached. The period between the date of declaration and the ex-dividend date is used by the firm to update its stockholders ledger. The date of record It is the date at which the stockholders figuring in the stockholders ledger are entitled to the cash dividend. No entry is required. The date of payment It is the date at which the firm distributes the dividend checks and eliminates the dividend payable as a liability. Property Dividends Firms may elect to declare a property dividend that is payable in nonmonetary assets rather than declaring a cash dividend. Because a property dividend can be classified as a non-reciprocal nonmonetary transfer to owners, the property distributed is restated at fair market value at the date of declaration and a gain or loss is recognized. Stock dividend: Given in the form of bonus shares or stocks of the issuing company or a subsidiary company. Normally, they are offered on the basis of a prorata allotment (1) Regular Dividend. By dividend we mean regular dividend paid annually, proposed by the board of directors and approved by the shareholders in general meeting. It is also known as final dividend because it is usually paid after the finalization of accounts. It sis generally paid in cash as a percentage of paid up capital, say 10 % or 15 % of the capital. Sometimes, it is paid per share. No dividend is paid on calls in advance or calls in arrears. The company is, however, authorised to make provisions in the Articles prohibiting the payment of dividend on shares having calls in arrears. (2) Interim Dividend. If Articles so permit, the directors may decide to pay dividend at any time between the two Annual General Meeting before finalizing the accounts. It is generally declared and paid when company has earned heavy profits or abnormal profits during the year and directors which to pay the profits to shareholders. Such payment of dividend in between the two Annual General meetings before finalizing the accounts is called Interim Dividend. No Interim Dividend can be declared or paid unless depreciation for the full year (not proportionately) has been provided for. It is, thus,, an extra dividend paid during the year requiring no need of approval of the Annual General Meeting. It is paid in cash. (3) Stock-Dividend: Companies, not having good cash position, generally pay dividend in the form of shares by capitalizing the profits of current year and of past years. Such shares are issued instead of paying dividend in cash and called Bonus Shares. Basically there is no change in the equity of shareholders. Certain guidelines have been used by the company Law Board in respect of Bonus Shares. (4) Scrip Dividend. Scrip dividends are used when earnings justify a dividend, but the cash position of the company is temporarily weak. So, shareholders are issued shares and debentures of other companies. Such payment of dividend is called Scrip Dividend. Shareholders generally do not like such dividend because the shares or debentures, so paid are worthless for the shareholders as directors would use only such investment is which were not . Such dividend was allowed before passing of the Companies (Amendment) Act 1960, but thereafter this unhealthy practice was stopped. (5) Bond Dividends. In rare instances, dividends are paid in the form of debentures or bounds or notes for a long-term period. The effect of such dividend is the same as that of paying dividend in scrips. The shareholders become the secured creditors is the bonds has a lien on assets(6) Property Dividend. Sometimes, dividend is paid in the form of asset instead of payment of dividend in cash. The distribution of dividend is made whenever the asset is no longer required in the business such as investment or stock of finished good sods. But, it is, however, important to note that in India, distribution of dividend is permissible in the form of cash or bonus shares only. Distribution of dividend in any other form is not allowed. Factors affecting divided decision or determinants of divided decision The financial management has to take a decision regarding the distribution of dividend. These are two possible ways of dealing with the distribution of profit. The profit should either be retained in the business or distributed to the shareholders. Retained profit plays an important role in the future growth and expansion of the enterprise, because these are internal sources of financing and do not involve floatation costs and legal formalities. As such the company will adopt the policy of residual or passive (lesser) distribution, so far it can profitably invest its retained earnings as a source of internal financing. The term residual distribution here means the declaration of dividend out of the profit remaining left after internal financing of the company. The dividend may be declared as higher rates if the intention of the company is to increase the value of shares. The dividend decision is also affected by the preference of shareholders. Let us now discuss the factors determining divided decisions: (1)Financial requirement of the company: If the company has profitable investment opportunities in the enterprise itself it will declare divided at lower rates. Meeting long-term financial requirement out of its own resources is always in the interest of the company, because it is cheaper due to absence of floatation costs and legal formalities. Higher divided will declared by the companies having few long-term investment opportunities. (2)Availability of funds: The liquidity of a company or availability of cash resources is prime consideration in divided decision. The greater the liquidity of a company, the greater is its ability to pay dividend. The liquidity of the company is strongly influenced by the firms investment and financing decisions. The investment decision determines the rate of asset expansion and the firms need for funds and the financing decision determines the way in which this need will be financed. (3)Stability of dividends: It is always in the interest of the company, investors and shareholders to follow the policy of stable dividend, because it resolves the uncertainty in the mind of investors and satisfies their for current income. Financial institution also like companies, declaring dividend regularly at stable rates. No company would like to ignore investment by financial institutions. In these circumstances the company may adopt one of the three following policies: A.Constant dividend per share or constant dividend rate:- According to this policy dividend is declared at constant rate every year. The rate may be increased if new level of profit is earned. B.Constant pay out ratio:- Dividend at fixed percentage of earning is paid every year. As earnings go on fluctuating every year, so the dividend also fluctuates. C.Constant dividend per share plus extra dividend :-Under the policy, minimum dividend per share is fixed. In case of extra earnings, extra dividend may be declared. Investors are kept satisfied with the supplementary dividend. Extra dividend may be taken as interior (4)Preferences of shareholders:- Shareholders are owners of the company, so their preferences must be given due consideration. Small, retired and salaried people prefer regular income. They are interested in stable and regular dividend. Wealthy investors are interested in capital gain. They are prepared to forego their current income over the expected higher income. (5)Capital market consideration:- Companies can raise their additional funds either by issue of shares or by retaining their profit. If the capital market is favorable the company will raise funds by issue of shares and declare dividends at higher rates. In case the capital market is unfavorable, the company will go in for retained earnings and declare dividends at lower rates. (6)Legal restrictions:- The companies act has laid down certain restrictions regarding payment of dividend. The company can use its current profits or past profits after providing for depreciation for the payment of dividend. The company cannot pay dividend out of its paid up capital. Company will have to satisfy itself, whether it has sufficient cash to make payment of dividends. The company is future required to make payment of interest before dividends are paid. (7)Information value:- The company should be aware of the possible impact of dividend decision on valuation of its shares. Most companies look at the dividend pay out ratios of other companies in the industry, particularly those having about the same growth. Investors expectation also plays an important role in dividend decision. If investors expectation is for high dividend pay out then company should take that into account while making a dividend decision. On the other hand, if investor expects a high market value of shares then company may decide for low dividend payout for future expansion plans. (8)Borrowing capability:- The borrowing capability of a firm affects dividend decision in the sense that high dividend payout is possible with greater borrowing capability and vice-versa. This ability to borrow can be in the form of credit or a revolving credit from the bank or simply the informal willingness of a financial institution to extend credit. The large and more established a company; the better is its access to capital markets. Issue for bonus shares:- Sometimes the company can also issue bonus shares, known as stock dividend in place of making payment of dividend in cash, It increases the number of shares and the capital base of the company, it keeps investors happy, The issues of bonus shares is an integral part of dividend policy. Dividend s Declared Announcement Date Effective Date Dividend Type Dividend (%) Remarks 18/05/2012 16/07/2012 Final 120% 26/05/2011 04/07/2011 Final 120% 27/05/2010 12/07/2010 Final 80% 25/06/2009 06/07/2009 Final 160% 26/06/2008 18/07/2008 Final 160% AGM 17/05/2007 08/06/2007 Final 155% 155% Dividend ( 130% for the year 2006-07 and special dividend of 25% on occasion of the Cenetenary year of the company.) 15/05/2006 26/05/2006 Final 130% AGM 19/05/2005 07/06/2005 Final 130% AGM 07/05/2004 08/06/2004 Final 100% AGM 08/05/2003 09/06/2003 Final 80% AGM 30/05/2002 28/06/2002 Final N.A.% Nil Final Dividend 02/04/2002 28/05/2002 Interim 40% 08/05/2001 Final 50% AGM 23/03/2000 Interim 40% 20/05/1999 Final 40% AGM Dividend 22/05/1998 Final 40% 23/05/1997 Final 45% Dividend Declared Dividend which was given to shareholder of Tata Steel Ltd. Directors have recommended a dividend of Rs. 7/- per Equity Share (last year Rs. 13/- per Equity Share on pre bonus share capital) for the financial year ended March 31, 2010, amounting to Rs. 2,430 crore (inclusive of tax of Rs. 346 crore) one of the highest ever payout by any private sector domestic company. The dividend will be paid to members whose names appear in the Register of Members as on May 11, 2010; in respect of shares held in dematerialised form, it will be paid to members whose names are furnished by National Securities Depository Limited and Central Depository Services (India) Limited as beneficial owners. The dividend payout for the year under review has been formulated in accordance with the Companys policy to pay sustainable dividend linked to long term performance, keeping in view the Companys need for capital for its growth plans and the intent to finance such plans through internal accruals to the maximum. Bonus share paid to Tata Steel Ltd. Announcement Date Bonus Ratio Record Date Ex-Bonus Date 07/06/2004 1 : 2 12/08/2004 11/08/2004 11/09/1987 2 : 5 11/09/1981 2 : 5 11/09/1967 2 : 5 11/09/1959 1 : 5 11/09/1954 1 : 1