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.
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 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.
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