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Under what circumstances can a declared dividend be revoked?
- a)A declared dividend can be revoked with shareholder consent
- b)A declared dividend can be revoked if the company faces financial difficulties
- c)A declared dividend can be revoked by the company's directors
- d)A declared dividend cannot be revoked once announced
Correct answer is option 'A'. Can you explain this answer?
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Under what circumstances can a declared dividend be revoked?a)A declar...
Under what circumstances can a declared dividend be revoked?
Under certain circumstances, a declared dividend can be revoked with shareholder consent. This means that if shareholders agree to revoke the dividend, it can be done. Let's delve into this further:
a) Shareholder consent: Shareholders have the power to approve or revoke a declared dividend. If a company's shareholders decide that it is in the best interest of the company to revoke a dividend that has already been declared, they can do so through a formal vote.
This process typically involves holding a meeting where shareholders discuss the reasons for revoking the dividend and then vote on the matter. If the majority of shareholders agree to revoke the dividend, the decision can be implemented.
In contrast, a declared dividend cannot be revoked unilaterally by the company's directors or due to financial difficulties. Shareholder consent is crucial in this process to ensure that the decision is made in the best interest of the company and its stakeholders.
Under certain circumstances, a declared dividend can be revoked with shareholder consent. This means that if shareholders agree to revoke the dividend, it can be done. Let's delve into this further:
a) Shareholder consent: Shareholders have the power to approve or revoke a declared dividend. If a company's shareholders decide that it is in the best interest of the company to revoke a dividend that has already been declared, they can do so through a formal vote.
This process typically involves holding a meeting where shareholders discuss the reasons for revoking the dividend and then vote on the matter. If the majority of shareholders agree to revoke the dividend, the decision can be implemented.
In contrast, a declared dividend cannot be revoked unilaterally by the company's directors or due to financial difficulties. Shareholder consent is crucial in this process to ensure that the decision is made in the best interest of the company and its stakeholders.
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Under what circumstances can a declared dividend be revoked?a)A declar...
Ordinarily, a declared dividend cannot be revoked. However, with the consent of the shareholders, a declared dividend can be revoked. This is because the declaration of dividend creates a debt to the shareholders, and any change requires their agreement.
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Under what circumstances can a declared dividend be revoked?a)A declared dividend can be revoked with shareholder consentb)A declared dividend can be revoked if the company faces financial difficultiesc)A declared dividend can be revoked by the company's directorsd)A declared dividend cannot be revoked once announcedCorrect answer is option 'A'. Can you explain this answer?
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Under what circumstances can a declared dividend be revoked?a)A declared dividend can be revoked with shareholder consentb)A declared dividend can be revoked if the company faces financial difficultiesc)A declared dividend can be revoked by the company's directorsd)A declared dividend cannot be revoked once announcedCorrect answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Under what circumstances can a declared dividend be revoked?a)A declared dividend can be revoked with shareholder consentb)A declared dividend can be revoked if the company faces financial difficultiesc)A declared dividend can be revoked by the company's directorsd)A declared dividend cannot be revoked once announcedCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Under what circumstances can a declared dividend be revoked?a)A declared dividend can be revoked with shareholder consentb)A declared dividend can be revoked if the company faces financial difficultiesc)A declared dividend can be revoked by the company's directorsd)A declared dividend cannot be revoked once announcedCorrect answer is option 'A'. Can you explain this answer?.
Under what circumstances can a declared dividend be revoked?a)A declared dividend can be revoked with shareholder consentb)A declared dividend can be revoked if the company faces financial difficultiesc)A declared dividend can be revoked by the company's directorsd)A declared dividend cannot be revoked once announcedCorrect answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Under what circumstances can a declared dividend be revoked?a)A declared dividend can be revoked with shareholder consentb)A declared dividend can be revoked if the company faces financial difficultiesc)A declared dividend can be revoked by the company's directorsd)A declared dividend cannot be revoked once announcedCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Under what circumstances can a declared dividend be revoked?a)A declared dividend can be revoked with shareholder consentb)A declared dividend can be revoked if the company faces financial difficultiesc)A declared dividend can be revoked by the company's directorsd)A declared dividend cannot be revoked once announcedCorrect answer is option 'A'. Can you explain this answer?.
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Under what circumstances can a declared dividend be revoked?a)A declared dividend can be revoked with shareholder consentb)A declared dividend can be revoked if the company faces financial difficultiesc)A declared dividend can be revoked by the company's directorsd)A declared dividend cannot be revoked once announcedCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Under what circumstances can a declared dividend be revoked?a)A declared dividend can be revoked with shareholder consentb)A declared dividend can be revoked if the company faces financial difficultiesc)A declared dividend can be revoked by the company's directorsd)A declared dividend cannot be revoked once announcedCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Under what circumstances can a declared dividend be revoked?a)A declared dividend can be revoked with shareholder consentb)A declared dividend can be revoked if the company faces financial difficultiesc)A declared dividend can be revoked by the company's directorsd)A declared dividend cannot be revoked once announcedCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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