DIVIDEND to shareholders

The companies act is very clear and dividend what ever and when ever declared has to be given to all share holders as per their holdings.

Dividend is paid to the shareholders. As per Companies Act, the equity share holders are having equal footing. One cannot give dividend to  some one and   others not. 

I concur with Adv.Haridasan's views. The shareholders having equitable rights, dividend cannot be given to a particular holder alone.

Dear Sirs,

Your valuable comments are sincerely appreciated. However, if B & C give in writing that they renounce their rights to dividend for that year or particular case, can then the dividend be given to only A ??

Thanks.

Only fools will give such consent. Who does not want money that too when co. is making good profit and why you want to deprive other share holders of the dividends due to them?

there has to be a premise/basis for renouncement say a valid consideration either cash some tangible benefit. Also in whose favour a shareholder will renounce his dividend. these are key issues for the proposal.

If they so like, they can withdraw the money from the Company and pay to A. Mind, the drawn money will be treated as income in your account and money  paid to A will be treated as gift. and respective tax provision will  apply.

Dear Mr. Haridasan, Vasudevan,

Many many thanks for your valuable comments.

Regards,

Kunal