Recommendation of audit committee for dividend

This query is : Resolved

Priya (Querist)
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23 August 2013 Sir/ Mam

Is it mandatory that a dividend should first be recommended by audit committee, then only by Board.

Ajay Mishra

Ajay Mishra (Expert)
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23 August 2013 Hi

It is not mandatory, but it is a part of financial result, so it will be a good practice that firstly Committee will look in to the matter and then send to Board with their comments.

Priya

Priya (Querist)
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23 August 2013 Yes, Sir. As a good practice the same will be ensured. thanks for the advice.

but in case audit committee says no for dividend and board meeting says yes, then i believe there should be no concern?

does such kind of instances have prevailed in past ?

Ajay Mishra

Ajay Mishra (Expert)
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23 August 2013 In this case, if their is dispute, Board decision will prevail.

Message likes : 1 times

Priya

Priya (Querist)
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23 August 2013 thanks for your time and guidance again.

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