Proposed dividend
This query is : Resolved
Guest
Guest
(Querist)
27 April 2012
Dear All,...
I just want to ask u that... can proposed dividend be increased or decreased in AGM????? plz reply with under which sec if possible........
Thanks.....
Dear All,...
I just want to ask u that... can proposed dividend be increased or decreased in AGM????? plz reply with under which sec if possible........
Thanks.....
Ajay Mishra
(Expert)
27 April 2012
Hi
In the matter of payment of dividend or not in any financial year irrespective of the profit earned by a company in the financial year is left to the discretion of the Board to recommend or not to recommend dividend for any year. If the Board does not recommend any dividend, the company in general meeting cannot consider and approve any dividend for payment. The company in general meeting cannot also increase the rate of dividend recommended by the Board.
Since the director's recommendation of dividend is only a proposal, it can be withdrawn by the Board before it is included in the notice for the annual general meeting.
Regards
In the matter of payment of dividend or not in any financial year irrespective of the profit earned by a company in the financial year is left to the discretion of the Board to recommend or not to recommend dividend for any year. If the Board does not recommend any dividend, the company in general meeting cannot consider and approve any dividend for payment. The company in general meeting cannot also increase the rate of dividend recommended by the Board.
Since the director's recommendation of dividend is only a proposal, it can be withdrawn by the Board before it is included in the notice for the annual general meeting.
Regards
CA Prashant Gupta
(Expert)
27 April 2012
Company in AGM cannot increase but decrease the rate of dividend.
Agree with expert.
Agree with expert.
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