Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Proposed dividend

1146 views 3 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 (3)

Giridhar S Karandikar

Team Lead

7558 Points Posted on 27 April 2012

Proposed dividend is recommended by the Board. The shareholders only give the approval for declaring the dividends by the company. they cannot increase the dividends. the dividends as proposed by the Board shall be the final, whihc only requires a formality by the shareholders to declare the same by the company.

CA Syed Raza Abbas Rizvi

PROPRIETOR

631 Points Posted on 27 April 2012

Share holders cant increase the dividend, but they have power to decrease it.

Aditya Soni

CS Final Student Trainee

727 Points Posted on 27 April 2012

Dear SOURABHSINH D. RAULJI,

As per Section 205 of the Companies act 1956, Shareholders can Decrease the proposed dividend but they do not have authority to increase the amount or percentage of the dividend.

For Reference, follow the link.

https://www.legalserviceindia.com/article/l246-Declaration-and-Distribution-of-Dividends-by-a-Company.html

https://www.icsi.edu/WebModules/Publications/SSONDIVIDEND%28SS3%29.pdf

Thanks n Regards,

Aditya Soni.