Dividend

The Board does not have right to declare the final dividend,the Board can propose the final dividend.The right of cancellation or reduction of the poposed dividend is with Members of the Company attending the AGM.

Once recommened / declared the final / intereim dividend board cannot cancell the dividend. However, members have rights in case of final dividend only to reduce the rate of divided while approving it in the AGM.

After declaration, it becomes debt for the Company.

Is there any provisions in the Companies Act 2013 with rules that the final Dividend proposed by the Board can not be cancelled at the AGM by the Members? if yes, please provide.

When  the Board of a Comapny proposed final divided the same is required to be approved by the Memebers at the AGM  of the Comapny by passing of an Ordinary resolution.When the members present  at the AGM cast their VOTES  and the resolution does not get minimum required majority of VOTES which is required to be passed insuch case the resolution is said to be not passed  and the resolution is dropped.In such case it is called that the members have cancelled the final Dividend proposed by the Board.The member present may reduce the the final dividend proposed by the Board and /or may cancell the final dividend proposed by the Board.The members of the Conapny present at the AGM can do so.

YES,once the final dividend is approved by the members it will become a debt of the Company but if the final dividend is not declared as above it will not become a debt of the Comapny becasuse the same is not declared.