Section 127 - Punishment for failure to distribute dividends

Failure to distribute dividends triggers director criminal exposure and company interest liability where payment is delayed beyond thirty days.

If a declared dividend is not paid or its warrant not posted within thirty days, directors knowingly party to the default face imprisonment up to two years and daily fines, while the company must pay simple interest at eighteen percent per annum for the default period; statutory exceptions relieve liability where payment is prevented by law, compliant directions from the shareholder cannot be followed, entitlement is disputed, the dividend is lawfully adjusted against sums due to the company, or the failure was not due to the company's default.