Payment of Dividend at higher rate

This query is : Resolved

^^^ AJIT ^^^ (Querist)
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10 November 2009 In a duly convened annual meeting of a Company, the shareholders passed a resolution for payment of dividend at a rate higher than what was recommended by the Board of Directors. Can this resolution be considered as legally valid and binding on the Company?

CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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10 November 2009 well this resolution cannot be considered as legally valid and not at all binding on the Company bcz its the power of the Board of Directors to recommend the payment of dividend and that recommended rate of dividend or a lesser rate of dividend can be declared at annual general meeting not a higher than what was recommended by the Board of Directors.

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