Priya Ltd. declared dividend but failed to pay the dividend in time which created grievances among shareholders and debentureholders. Describe the provisions of law available for the beneficiaries.

The provisions of law available for the shareholders and debenture holders are as follows- Section 127 of the Companies Act, 2013 provides where a dividend has been declared by a company but has not been paid or the warrant in respect thereof has not been posted within thirty days from the date of declaration to any shareholder entitled to the payment of the dividend, every Director of the Company shall, if he is knowingly a party to the default, be punishable with imprisonment which may extend to two years and with fine which shall not be less than ₹1,000 for every day during which such default continues and the company shall be liable to pay simple interest at the rate of eighteen per cent. per annum during the period for which such default continues: Provided that no offence under this section shall be deemed to have been committed:- where the dividend could not be paid by reason of the operation of any law; where a shareholder has given directions to the company regarding the payment of the dividend and those directions cannot be complied with and the same has been communicated to him; where there is a dispute regarding the right to receive the dividend; where the dividend has been lawfully adjusted by the company against any sum due to it from the shareholder; or where, for any other reason, the failure to pay the dividend or to post the warrant within the period under this section was not due to any default on the part of the company. Section 178(5) of the Companies Act, 2013 provides for constitution of the Stakeholders Relationship Committee. Clause 49 (VIII) (E) of the Listing Agreement provides that Stakeholders Relationship Committee, under the Chairmanship of non-executive director shall be constituted to look into and redress the grievances of shareholders, debenture holders and other security holders. This Committee shall consider and resolve the grievances of the security holders of the company including complaints related to transfer of shares, non-receipt of balance sheet, non-receipt of declared dividends. Hence, in the given case, after the declaration of the dividend, it becomes the liability on the part of the company to pay the dividend to the eligible shareholders and if it is not paid within the prescribed time limit the directors and company are liable for such failure.