16.7 C
HomeBusinessNavigating the Terrain of Dividend Declaration || Register karo

Navigating the Terrain of Dividend Declaration || Register karo

I am Krishna8868 (techme.ai.krishna@gmail.com). I hold full responsibility for this content, which includes text, images, links, and files. The website administrator and team cannot be held accountable for this content. If there is anything you need to discuss, you can reach out to me via techme.ai.krishna@gmail.com email.

Disclaimer: The domain owner, admin and website staff of Reviews Consumer Reports, had no role in the preparation of this post. Reviews Consumer Reports, does not accept liability for any loss or damages caused by the use of any links, images, texts, files, or products, nor do we endorse any content posted in this website.

Section 123 of Companies Act 2013 serves as a lodestar for companies navigating the terrain of dividend declaration. It embodies the principles of financial prudence, transparency, and accountability, safeguarding the interests of shareholders and fostering investor confidence. By adhering to the provisions delineated therein, companies can chart a course of sustainable growth and prosperity, in consonance with the overarching objectives of corporate governance.

Section 123 of the Companies Act, 2013 pertains to the declaration and distribution of dividends by companies. This section lays down the guidelines for the payment of dividends to shareholders. It states that dividends can only be paid out of profits earned by the company in the current financial year, or out of profits generated in previous financial years which have been transferred to the reserves of the company.

Additionally, it emphasizes that dividends cannot be declared and paid if the company does not have adequate profits, or if doing so would be detrimental to the company’s ability to meet its financial obligations. Furthermore, Section 123 outlines the procedure for declaring dividends, which includes convening a meeting of the board of directors to approve the declaration, and subsequently notifying the shareholders of the decision. Compliance with the provisions of this section ensures that dividends are distributed in a fair and transparent manner, safeguarding the interests of both the company and its shareholders.

explore more