14 November 2007
I amlooking for answer with some sections or case law. My question is during a interview they ask me that if board declare dividend which is later passed by member but company did not pay then what will happend
15 November 2007
The Company has to pay dividend within 30 days from the date of Annual General meeting held in which the said dividend was declared.If not every director is punishable with imprisonment and fine as per Section 207 of the Companies Act. Further Proviso to Section 207 exempts some situation under that the procecution shall not be attracted.
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