Can anybody tell that under which section of Companies Act 1956, AGM can not declare the higher rate of dividend than dividend declared by BOD?
5 Replies
Sumit Jaiswal
(Company Secretary)
(818 Points)
Replied 03 September 2011
Accoording to Regulation 85 of Table A of the Companies Act, 1956, a company in general meeting may declare dividends, but no dividend shall exceed the amount recommended by the BOD of the company. The shareholders at an AGM may reduce the amount of dividend recommended by the BOD, but they cannot increase it.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 03 September 2011
Exactly, agree with the learned member.
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