November 29, 2001
‘7’
LOK SABHA
ACTION AGAINST FAILURE OF COMPANY TO PAY
DIVIDEND TO SHAREHOLDERS
If any company fails to pay dividend after its declaration, the company and its directors can be prosecuted under Section 205A and 207 of the Companies Act, 1956 by the Department of Company Affairs, when it comes to the Department’ notice.
This information was given by the Union Minister of Law, Justice and Company Affairs, Shri Arun Jaitley in a written reply to a question from Shri Naresh Puglia in the Lok Sabha today.