Proposed dividend

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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. 

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

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

plzz 

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