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divident payment

JERIT JOSE (24 Points)

02 January 2019

is divident paid on face value or paid up value please explain with respective sec. of company act,2013

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Shankhadeep Nath (Student) (63 Points)
Replied 02 January 2019

In accordance to Section 51 of CA2013 dividend can be paid by company in proportion to the amount paid up if authorised by it's article.
Please note that it is voluntary for company to do so. That means Directors while declaring dividend u/s 123 of CA2013 can decide to pay dividend only to fully paid up capital.

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