DIVIDEND

 

  • The term dividend may be defined as the part or portion of profit that falls to the each individual unit of shares.
  • Part of profit of company that is distributed to the shareholders is dividend. Section 182.
  • But in the event of winding up of company, the dividend means the division of company’s assets among its members.
  • Any company has the power to distribute its profit to all the shareholders.
  • The company has an implied power to distribute dividend from its profits. The power to declare dividend need not to be expressly mentioned in MoA & AoA. So, this is implied power of company other than a profit not distributing company.