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Question
Dividend once declared cannot be revoked.
Options
True
False
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Solution
This statement is True.
Explanation:
Once a dividend is declared by the company’s Board of Directors and approved by the shareholders in the Annual General Meeting (AGM), it becomes a legal obligation and cannot be revoked. The company must pay the declared dividend to eligible shareholders within the prescribed time. Failure to do so can lead to legal consequences under company law.
RELATED QUESTIONS
Write a word or a term or a phrase which can substitute the following statement.
Number of days within which payment of dividend be completed by company, after its declaration.
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GOLD Co. Ltd. declares a dividend of ₹ 10/- per share for F.Y. 2018-19.
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Listed Company
Study the following case/situation and express your opinion:
GOLD Co. Ltd. declares a dividend of ₹ 10/- per share for F.Y. 2019-20.
- Is the company under default, if the dividend was not paid within 30 days of its declaration?
- Is the company right in transferring the unpaid dividend to its Debenture Reserve Account?
- Does the company have to transfer the amount of unpaid dividends to IEPF after 30 days?
