Proposed dividend

820 views 5 replies

Guest

Dear All,...

I just want to ask u that... can proposed dividend be increased or decreased in AGM????? plz reply with under which sec if possible........

Thanks.....

Replies (5)

CA Syed Raza Abbas Rizvi

PROPRIETOR

631 Points Joined December 2009

hiiiiiii

The shareholders at the annual general meeting may vote to reduce, but may not increase, the dividend proposed by the board of directors. But I dont know the secion.

Mihir Doshi

B.Com CA CS LLB

2187 Points Joined July 2008

Dear, Shareholders can reduce the amount of dividend but they can not increase the amount of dividend as suggested by the BOD.

Mihir Doshi

B.Com CA CS LLB

2187 Points Joined July 2008

Dear, Shareholders can reduce the amount of dividend but they can not increase the amount of dividend as suggested by the BOD.

Guest

thanks all.. for ur valuable replies......

But i want the section under which this was said.....

plzz

Guest

Dear Saurabh Sinh,

As per Regulation 85 of Table 'A' of Schedule I to the Companies Act 1956, the power to declare a dividend vests with the general meeting, but it has no power to declare a dividend exceeding the amount recommended by the board.

But if a dividend is so declared at the general meeting, the company can not declare a further dividend for the same year. (Circular no. 2 issued by the department of Company Affairs dated 25.10.1975)

Regards,

Veeral Gandhi