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HomeCA IntercorporatelawsFinal Dividend Debt › Final dividend, once declared at an AGM:

Final dividend, once declared at an AGM:

Answer & Solution
Correct answer: A.
1. Once declared by the shareholders in AGM, the dividend becomes a DEBT enforceable against the company. 2. Section 127 mandates payment within 30 days; non-payment attracts penalties. 3. Hence (B). _Source: ICAI BoS CA Inter Paper 2 — Declaration and Payment of Dividend_
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