Question

    According to the provisions of Section 127 of the

    Companies Act, 2013, if a company fails to pay the dividend, within a period of 30 days from the date of its declaration, to the shareholders who are entitled to the dividend then every director of company is liable for penalty of _______
    A Rs. 100 per day Correct Answer Incorrect Answer
    B Rs.200 per day Correct Answer Incorrect Answer
    C Rs. 500 per day Correct Answer Incorrect Answer
    D Rs.1000 per day Correct Answer Incorrect Answer
    E Rs.2000 per day Correct Answer Incorrect Answer

    Solution

    According to the provisions of sec- 127 of the Companies Act, 2013, if a company fails to pay the dividend, within a period of 30 days from the date of its declaration, to the shareholders who are entitled to the dividend then every director of Company who is responsible is punishable with imprisonment up to 2 years and fine of Rs.1000 per day for every day, during which such failure continues and Snapshot from study notes of the ixamBee SEBI course covering topic in crisp and easy to remember format

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