Explain whether the Articles of Association of a company can provide for payment of dividend by a company in proportion to the amount paid up on its equity shares.

In terms of Section 51 of the Companies Act, 2013, a company may, if so authorised by its articles, pay dividend in proportion to the amount paid- up on each share. Thus, the Board of Directors of a company may decide to pay dividend proportionately, i.e. in proportion to the amount paid-up on each share when all shares are not uniformly paid up, i.e. pro rata subject to the condition that the company's articles of association expressly authorising the company in this regard.