Multiple choice

Which of the following is not a statutory provision regarding declaration and payment of dividend under Companies Act 1956?

  1. Dividend can be declared out of divisible profits only or out of money provided by the government.

  2. Dividend can be declared out of capital.

  3. Dividend can be calculated at the declared rate on paid up value of shares.

  4. Dividend can be declared on the nominal value or called up value of shares.

  5. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Dividend is never declared out of capital.

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