As per Companies Act 2013, Payment of Dividend is dealt U/S:

As per the Companies Act 2013, the payment of dividend by a company to its shareholders is governed by Section 123. This section outlines the rules and regulations related to the declaration, distribution, and payment of dividends, including the sources from which dividends can be paid, the procedure for declaring dividends, and the restrictions on declaring dividends. It ensures that companies follow transparent and fair practices while distributing profits to their shareholders.