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Dividend declaration by circulation of resolution

C S Neelam Suthar (CS) (50 Points)

05 March 2016

can any company pass a board resolution for declation of dividend by circulation?? please help . . .

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3 Replies

prakash (Company Secretary) (1352 Points)
Replied 05 March 2016

Neelam,

is it interim dividend?, Generally, Board recommends Dividend and Shareholders declare same in General Meeting.

I opine that if it is interim dividend, it can be declared by way of circular resolutions since this item is not covered by Sub (3) of Section 179 of CA, 2013, Which stipulates few items should be exercised by means of resolutions passed at meetings of the Board only.

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 07 March 2016

Yes, interim dividend can be declared by the Board by circular resolution.

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