cancellation of interim dividend declared by a listed company

[Swap]

 Dear Members,

 Can interim dividend declared by a listed company be revoked ? Within how many days company can revoke ?

  The interim dividend is declared in February 2014.

  Regards,

  Swapnil

[Amar Hussain]

Dear Swapnil,

In the case of an iterim dividend, the Board of Directors may, on further consideration, and at any time before payment of the same, rescind the resolution for payment, if it is discovered that the circumstances do not justify such payment.

Case laws:

-  Cf. Lagunus Nitrate Co. Ltd. V. Schroeder & Co. and Schmidt, (1901) 85 Law Times 22

- Kothari Textiles Ltd. V. CWT, (1963) 33 Com Cases 217.

Amar 

 

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[CS Swapnil]

 

  In this case dividend was declared in February 2014. Since Section 2(14) is applicable, dividend can be revoked within 5 days       of declaration & with consent of all directors. Correct me if I am wrong.

      Regards,

  Swapnil

[Amar Hussain]

Dear Swapnil,

In the case of an iterim dividend, the Board of Directors may, on further consideration, and at any time before payment of the same, rescind the resolution for payment, if it is discovered that the circumstances do not justify such payment.

Case laws:

-  Cf. Lagunus Nitrate Co. Ltd. V. Schroeder & Co. and Schmidt, (1901) 85 Law Times 22

- Kothari Textiles Ltd. V. CWT, (1963) 33 Com Cases 217.

Amar 

 

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[Swap]

Ok. 

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[CS SWAPNIL]

 This matter is with respect to Listed Company & disclosure is already sent to the Stock Exchanges.

  Regards,

  Swapnil