Dividend usually is a payment made by a company to its shareholders out of distributable profit. In layman term, it is a share of profit for a shareholder. The Companies Amendment Act, 2017 read with notification dated 9th February 2018 amended law related to declaration of dividend. This post discusses law related to dividend after recent amendment in the Companies Act, 2013.
Posted in Chapter VIII - CA2013, Companies Act 2013
Dividend is a payment made by a company to its shareholders out of distributable profit.
DECLARATION OF DIVIDEND (SECTION 123):
A company shall declare dividend and pay it, only out of profit of the company for the financial year or out of undistributed profit of any previous financial year or out of both.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Companies Act 2013, Companies Bill 2012, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Dividend, Dividend Account, IEPF, India, Interim Dividend, Investor Education and Protection Fund, Legal Reforms, Ministry of corporate affairs, Reforms, Unpaid Dividend
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