To enable a company to pay dividend a special authority is ........

Companies Act-Phase (I & II) Paymentofdividends

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To enable a company to pay dividend, a special authority is:

Not needed either in the memorandum of association or in articles of association

Needed either in memorandum of association or in articles of association

Needed only in memorandum of association

Needed only in articles of association

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Explanation:

Provisions relating to declaration of Dividend is contained in Section 123 of Companies Act, 2013. There is no provision required in MOA or AOA to pay/declare or recommend dividend. Dividend is to be declared by the company at its AGM on such rate as may be recommended by BODs and company has no power to declare dividend exceeding the amount recommended by the BODs.