I just want to ask u that... can proposed dividend be increased or decreased in AGM????? plz reply with under which sec if possible........
CA Syed Raza Abbas Rizvi
Replied 27 April 2012
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.
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)