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CA Intermediate · Corporate and Other Laws · Declaration and Payment of Dividend

Himalaya Textiles Ltd. has declared a final dividend at its annual general meeting held on 10 September. The company has not yet paid the dividend. Under the Companies Act, 2013, within how many days of the declaration must the dividend ordinarily be paid to the shareholders entitled to it?

The dividend must be paid within 30 days from the date of declaration. The Companies Act, 2013 sets this period for paying a declared dividend to the shareholders entitled to it, and delay beyond it attracts consequences for the company and defaulting directors.

  1. A15 days
  2. B30 daysCorrect
  3. C45 days
  4. D60 days

Explanation

A company must pay the declared dividend within 30 days from the date of declaration. The 15, 45 and 60 day periods have no basis in the Act for this purpose.

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