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dividend revocation
if a company declares the dividened at the agm without providing for the DPR of current year which if provided would result into loss in the current year. can the BOD revoke it's decision
Replies (3)
also will the answer be different if the company doesn't have any accumulated profits?
Once a dividend is declared it becomes a liability for the company to pay the dividend within 30 days from the date of declaration.
Revocation is possible in 2 cases
1. in case of ultra virus.
2. in case the going concern of the company is affected.
In the given situation the dividend cannot be revoked , the company has to pay the dividend.
Revocation is possible in 2 cases
1. in case of ultra virus.
2. in case the going concern of the company is affected.
In the given situation the dividend cannot be revoked , the company has to pay the dividend.
but the dividened declared is not as per the provisions of section 123. will it make a difference?
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