The Board of Directors of American Express Ltd. declared interim dividend third time during the financial year 2015-16. After declaration, the Board of Directors decided to revoke third interim dividend as they noticed t

The Board of Directors may declare interim dividend and the amount of dividend including interim dividend shall be deposited in a separate bank account within 5 days from the date of declaration of such dividend. A dividend when declared becomes debt and a shareholder is entitled to sue for recovery of the same after expiry of the 30 days prescribed under Section 127. Section 2(35) defines 'Dividend' to include interim dividend. Therefore, the interim dividend once declared cannot be revoked except with the consent of the shareholders. Based on aforesaid facts, Board of directors of American Express Limited cannot revoke the interim dividend and should pay the same. No, Regular dividend also cannot be revoked even by the shareholders. It's a statutory debt against the company once it is declared.