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CS Executive · Corporate Accounting and Financial Management · Dividend Decisions

Under the Companies Act, 2013, once a final dividend has been declared by a company at its general meeting, within how many days must the dividend be paid to the shareholders?

A declared dividend must be paid within 30 days from the date of declaration. If the company fails to do so, it must pay simple interest on the delayed amount and the directors may face penal consequences under the Companies Act, 2013.

  1. A15 days from the date of declaration
  2. B30 days from the date of declarationCorrect
  3. C45 days from the date of declaration
  4. D60 days from the date of declaration

Explanation

The Act requires payment of declared dividend within 30 days from the date of declaration. Fifteen days is a distractor with no basis for this rule. Failure to pay within the period attracts penal interest and consequences for directors.

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