Board of Directors of XYZ Limited proposed the dividend at 12% on equity shares for the financial year 2023-24. The same was approved in the annual general meeting of the company held on 10th September, 2024. The Managin

The given problem is based on the exception provided in section 127 (d) of the Companies Act, 2013. As per the law, where the dividend is declared by a company and there remains calls in arrears and any other sum due from a member, in such case no offence shall be deemed to have been committed where the dividend has been lawfully adjusted by the company against any sum due to it from the shareholder. As per the facts given in the question, Akar is holding equity shares of face value of Rupees 10 Lakhs and has not paid an amount of Rupees 1 lakh towards call money on shares. Referring to the above provision, Akar is eligible to get Rupees 1.20 lakh towards dividend, out of which an amount of Rupees 1 lakh can be adjusted towards call money due on his shares. Rupees 20,000 can be paid to him in cash or by cheque or by an electronic mode. According to the above-mentioned provision, the company can adjust the sum of Rupees 1 lakh due towards calls in arrears on shares against the dividend amount payable to him.