A dividend creates a debt towards the shareholders. Hence, once declared a dividend can not be revoked.

Advertisement

Exception:-

(1)     In can be revoked with the consent of the shareholders.

(2)     It can be revoked where it has been declared illegally.

(3)     It can be revoked in the event of outbreak of war, imposition of taxes, etc where it is better to conserve assets.

Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
0 Comments
  1. vagragenericaar.org 1 month ago

    Thank you.

    Youseful blog. Good post.

Leave a reply

Your email address will not be published. Required fields are marked *

*

*

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account