Whether the company can declare dividend in case it was registered under Section 8 of the Companies Act, 2013?
CA Intermediate · Corporate and Other Laws · MTP · January 2026
Whether the company can declare dividend in case it was registered under Section 8 of the Companies Act, 2013?
Suggested Answer and Working Notes:
According to section 8 (1) of the Companies Act, 2013, a company having licence under Section 8 (Formation of companies with charitable objects, etc.) is prohibited from paying any dividend to its members. Its profits are intended to be applied only in promoting the objects for which it is formed.
Topics: Declaration and Payment of Dividend
Related Questions in this Topic
- The dividend amounts received or receivable on equity shares held by Mr. Sharma for the financial year 2024-25 was as fo...
- Smart Limited declared dividend at its AGM on 31-07-2025. The dividend warrant to Mr. A was posted on 22nd August 2025 b...
- Manish, a shareholder, has not claimed dividends declared by his company for the last 8 years, for various reasons. Advi...
- Apex Infra Limited is a listed public company. The company had declared a final dividend @ 12% on its equity shares of f...
- The Board of Directors of Pacific Fashions Limited at its meeting recommended a dividend on its paid-up equity share cap...