ABC Ltd. is a public company listed on stock exchange. The company declared a dividend in the Annual General Meeting held on 1st May, 2020. However, the dividend was distributed on 5th June, 2020. One of the shareholders
CS Executive · Securities Laws and Capital Markets · PYQS · December 2022
ABC Ltd. is a public company listed on stock exchange. The company declared a dividend in the Annual General Meeting held on 1st May, 2020. However, the dividend was distributed on 5th June, 2020. One of the shareholders Jyeti made a complaint on SCORES platform on 5th June, 2022. Answer the followings: Whether the action of ABC Ltd. is as per the Companies Act, 2013?
Answer & Explanation:
The Companies Act, 2013 requires the distribution of dividend to shareholders within 30 days from the date of declaration of dividend. In this case, the dividend was declared on 1st May, 2020, and distributed on 5th June, 2020. This period exceeds 30 days. Therefore, the action of ABC Ltd. is not as per the Companies Act, 2013 .
Topics: Dividend
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