Final dividend, once declared at an AGM:
ABecomes a debt of the company payable within 30 days to the shareholders entitled
BCan be revoked by the Board at its discretion
CCan be revoked only with shareholder consent within 30 days
DIs purely advisory
Answer & Solution
Correct answer: A. Becomes a debt of the company payable within 30 days to the shareholders entitled
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_