Dividend Declaration as per companies Act 2013

The process in which the Board of Directors makes a decision and declares a dividend for the payment to the stockholders by which the retained earnings account of the company gets reduced by the amount of the declared dividend. *The retained earnings account is an account that holds equity of the company and shows the net balance earnings. Notice of dividend shall be given: Notice of dividend declared shall be given to the persons entitled to share in it (as per Clause 87 of Model Articles of Company limited by shares as contained in Table-F of schedule-I of 2013 Act)
The process of Dividend Declaration as per Companies Act 2013
The company shall recommend in the General Meeting the amount of dividend which it can decide in the Board Meeting.
The resolution for Dividend in the Notice of General Meeting shall be mentioned by the company
General Meeting will be held by the company:
Declaration of the dividend is Ordinary Business.
Ordinary Resolutions for the declaration of a dividend will be passed in the General Meeting.
4. It must be paid within 30 days once the dividend is declared. {As per Clause 80 of Model Articles of Company Limited by shares as Contained in Table-F of Schedule-I of the 2013 Act}
Important notes
Dividends declared in the General Meeting can’t exceed the dividend recommended by the Board.
The dividend declared in the General Meeting by the member can be less than the dividend recommended by the Board.
The dividend paid in the General Meeting is the Final Dividend.

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