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Revocation of interim dividend

Others 2234 views 7 replies
can interim dividend can be cancelled after declaration in board meeting?
Replies (7)
dividend whether interim or final becomes debt therefore cannot be revoked or cancelled since before declaration equal AMT is transferred to bank...
Can be rvoked under some circumstances... Like company ceases to going concern.... Declaration of dividend is ultra vires... Plz refer section 123(3)
Company has not earned sufficient profits
Once dividend is declared it becomes debt to the company.

However if the dividend has been declared not according to the provisions of the act or illegally or when accounts has been shown incorrect profit in such case dividend can be revoked..

Even after passing resolution in the general meeting such dividend can be revoked.
Can you refer any Pratical live case your reference about cancellation of interim Dividend or final. However the final Dividend may be cancelled at the AGM itself by non acceptance by the member. In other words ordinary resolution for that final Dividend has not passed then Accordingly final Dividend may be cancelled. To align my understanding of the provisions of companies Act, 2013 read with SEBI(LODR) REGULATIONS, 2015 schedule III-PART-A PARA - A Sub para 4 point-b States about cancellation of Dividend with explanation to stock exchange.

I agree with you logical interpretation of law however in practical case we should also quote the specific  section which you rely to say this statement  about the revocation of Dividend. 

Can you please provide me number of section in which this is written.   

dividend can not be revoked after declaring in AGM with exceptional cases

IN your case , dividend can be revoked after board meeting . 


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