X is a shareholder of Company A. At the AGM held on 27th Sep. 2018, Company A declared a Dividend of ₹20 per equity share. X wrote to the company saying that he does not want to take the dividend and advised the company

The Companies Act, 2013 is silent on waiver of dividend. However, enabling provision in Articles of Association of the company is necessary since the same is binding on all members. Under the provisions of Section 5(2) of Companies Act, 2013, the Company shall include additional matters in its Articles which may be considered necessary for its management. Some Companies have altered their AOA to insert provisions for waiving/forgoing the Dividend. In case of final dividend, board of directors recommends the payment of dividend after complying with the statutory provisions, and the same is then approved by the shareholders of the company at the AGM. Hence, shareholders of the company can waive their right to receive dividend once the same is proposed by the board of directors of the company but before it is declared. Hence, the waiver instructions are to be provided every year by the members willing to forgo their rights of dividend. It should be preferably received by the Company before the record date is fixed for payment of the Dividend.