"Green Initiative" is a Section 8 company, which has been operating successfully for the past 10 years, primarily engaged in environmental conservation and social welfare activities. Many big public limited companies fun

Dividend can be declared by all types of companies except section 8 companies (i.e companies with charitable objects etc.) which prohibit the payment of any dividend to its members. According to Section 8(1)(c) of the Companies Act, 2013, the company having license under Section 8 (Formation of Companies with Charitable Objects etc.) are prohibited from paying any dividend to its members. Their profits are intended to be applied only in promoting the objects of the Company. In the above case Green Initiatives., a section 8 company was planning to declare dividend. As per the provisions of section 8 a company registered under this section is prohibited from declaring dividend. Hence, Green Initiatives, which is planning to declare dividend, cannot do so according to the provisions of the Companies Act, 2013.