Is it possible for board of a company to revoke the dividend proposed at board meeting?
3 Replies
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 27 July 2015
Final dividend is declared by members in general meeting. Board only recommends. Revoking by Board is not possible after it is declared by members. Revoking before approval of members will mean revising financials also.
prakash
(Company Secretary)
(1352 Points)
Replied 28 July 2015
Dear Vinay,
If dividend is recommended by Board and yet to be declare by shareholders, in that case, board can revoke its proposal and see that financial will undergo changes.
if dividend is declared by shareholders in general meeting, it cannot be revoked, your directors and company will attract punishment for failutre to distribute dividends under section 127 of the Companies Act, 2013.
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