Economics · Corporate Accounting - Share Capital
Under the Companies Act, 2013, a company can pay dividends in proportion to the amount paid-up on each share only if:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1All categories of issued shares have been fully paid up.
- 2Prior written permission is obtained from the Central Government.
- 3It is explicitly authorized by its Articles of Association (AOA).✓
- 4It has no preference shareholders in its capital structure.
Correct answer
It is explicitly authorized by its Articles of Association (AOA).
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