06 September 2016
When the Board of Director 's has NOT recommended dividend in its Board Report, then in such case the notice for calling Annual General Meeting under section 102 of Companies Act 2013, SHOULD NOT contain item mentioning THE DECLARATION OF DIVIDEND as an item in Ordinary business of said AGM. If any company adds the said item in its AGM as per provision of section 102 of Companies Act 2013 / Secretarial Standards norms, even if the Board of Director's do not recommend the same in its report, then it will be still a violation of section 102 & 123 of Companies Act 2013 & the directors of the company will be held liable under section 172 of Companies Act 2013. Is my interpretation correct?
Querist :
Anonymous
Querist :
Anonymous
(Querist)
15 April 2017
When the Board of Director 's has NOT recommended dividend in its Board Report, then in such case the notice for calling Annual General Meeting under section 102 of Companies Act 2013, SHOULD NOT contain item mentioning THE DECLARATION OF DIVIDEND as an item in Ordinary business of said AGM. If any company adds the said item in its AGM as per provision of section 102 of Companies Act 2013 / Secretarial Standards norms, even if the Board of Director's do not recommend the same in its report, then it will be still a violation of section 102 & 123 of Companies Act 2013 & the directors of the company will be held liable under section 172 of Companies Act 2013. Is my interpretation correct?