alleryStart learning →No offence under Section 127 is committed where there is
Aa temporary shortage of cash
Ba dispute on right to receive
Ca sharp rise in share price
Da change of statutory auditors
Answer & Solution
Correct answer: B. a dispute on right to receive
A dispute about who has the right to receive the dividend is one of the listed exceptions to the offence.
Keep practising Declaration and Payment of Dividend
Browse all Declaration and Payment of Dividend questions for CA Inter, or explore more Law topics.
Related questions
Dividends on preferred shares must be paid before those onThe most common form of dividend payment isSince Budget 2020-21, what has happened to India's DDT?A payout ratio above 100% means the company paidDeclaring a dividend creates what in the company's books?Only holders registered on which date receive the dividend?On and after the ex-dividend date, a buyer of the shareDividends paid before the AGM and final accounts are