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Declaration and payment of dividend

Corporate & Other Laws

Sir in this question Even though he was not invested why we are taking 100 Rs. As investment

M V Naresh

CA Final

★ 3K+

29-Jun-21 16:42

239

Answers (1)

Unless there is a provision in the article of association to pay the dividend in proportion to paid up capital, generally the dividend is paid on the full nominal value of the share. ( Section 51) Accordingly here 10% dividend is calculated on the full nominal value for 5000 shares even though the paid up value is less. Reason being there is nothing stated about it in the article of association.