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Question
Justify the following statement.
AGM is crucial for Final Dividend.
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Solution
- The final dividend is declared and paid after the close of the financial year.
- It is decided and recommended by the Board of Directors.
- Dividend as recommended by the Board of Directors is approved and declared by a resolution passed at the Annual General Meeting (AGM).
- The final dividend is declared by the shareholders in the AGM.
- Thus, AGM is crucial for the Final Dividend.
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