Failure to distribute dividends exposes directors to criminal liability and companies to interest and fines under statutory provisions. Where a company declares a dividend but does not pay it or post the warrant within thirty days, directors knowingly party to the default face criminal penalties and minimum daily fines, and the company is liable to pay simple interest for the period of default.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Failure to distribute dividends exposes directors to criminal liability and companies to interest and fines under statutory provisions.
Where a company declares a dividend but does not pay it or post the warrant within thirty days, directors knowingly party to the default face criminal penalties and minimum daily fines, and the company is liable to pay simple interest for the period of default.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.