In case the dividend has been declared by a company but has not been paid within stipulated period o...........

Companies Act-Phase (I & II) Paymentofdividends

In case the dividend has been declared by a company but has not been paid within stipulated period of 30 days, the defaulting directors shall be punishable with:

Imprisonment which may extend to 2 years and with fine of 1000/- per day during which default continue

Imprisonment which may extend to 3 years and with fine of 2000/- per day during which default continue

Imprisonment which may extend to 5 years and with fine of 10,000/- per day during which default continue

Imprisonment which may extend to 1 year and with fine of 1000/- per day during which default continue

None of the above

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Explanation:

As per section 127 of Companies Act, 2013, when a dividend has been declared by a company but has not been paid or warrant in respect thereof has not been posted within 30 days from the date of declaration to any shareholder entitled to the payment of dividend, every director of the company shall, if he is knowingly a party to the default, be punishable with imprisonment which may extend to 2 years and with fine which shall not be less than 1000/- for every day during which such default continues.