Proposed dividend

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.

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.