State whether the following statements are true or false with reasons: Each Company sets its own dividend policy according to what it thinks is in the best interest of its shareholders.

True. Shareholders are the ultimate authorities to decide the amount of dividend to be declared, usually through board recommendations and shareholder approval. While there are no specific statutory provisions under the Companies Act, 2013, dictating the exact dividend payout, companies formulate their dividend policy based on various factors such as profitability, liquidity, future investment opportunities, industry norms, and shareholder expectations, all aimed at maximizing shareholder wealth and acting in their best interest. The board of directors proposes the dividend, and shareholders approve it.