Payment of dividends

ramsha (Querist) 19 June 2013 This query is : Resolved
There is one Company. It has declared the payment of dividends. The query is basically whether can the dividends be paid to the Promoters of the Company first or to its members?

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Rajendra K Goyal (Expert) 19 June 2013
Academic query.

Dividend is paid on no. of shares held irrespective of the person / institution holding it subject to the provisions of Company Act.

prabhakar singh (Expert) 19 June 2013
State the facts if you have any, else read a book for several circumstances.

Rajeev Kumar (Expert) 19 June 2013
Academic query

KIRAN AMARPURI (Expert) 19 June 2013
Dividend is paid to its members those who are holding shares in the company and not to directors or promoters. Therefore, if dividend is declared then it is paid to members only. If directors are also holding shares then in that case they are also treated as members and they are paid dividend at the same time.

Raj Kumar Makkad (Expert) 20 June 2013
Dividend is the right of the shareholders of the company may those be promoters or not. No distinction can be made thereto.