Pluto Limited has a paid-up equity share capital of ₹ 10 crore comprised of: (a) 80 lakh equity shares of ₹ 10 each fully paid up (b) 40 lakh equity shares of ₹ 10 each on which only ₹ 5 per share is paid up. The company

Section 51 of the Companies Act, 2013 provides that a company may, if so authorised by its articles, pay dividends in proportion to the amount paid- up on each share. The section allows a company to pay dividends in proportions to the amount paid-up on each share, when they are not uniformly paid up. In the instant case, Pluto Ltd has equity shares that are not uniformly paid up. But, the articles of association of the company is silent as to whether dividends can be paid on pro rata basis. Hence, Pluto Ltd cannot pay dividend in proportion to the amount paid up, unless the articles of association of the Pluto Ltd expressly provide for such pro rata payment.