Abstract

In the world of business law, dividend payment practices are a blend of legal rules, financial choices and corporate governance. Dividends are not merely financial transactions; they represent the commitment of a company towards its shareholders and often reflect the financial health and stability of the organization. In the India, the payment of dividends is governed primarily by the Companies Act, 2013 along with various regulations and guidelines issued by regulatory authorities such as the Securities and Exchange Board of India (SEBI). These legal provisions establish the framework within which Indian companies must navigate dividend-related decisions. Furthermore, judicial decisions and case laws have provided valuable insights and clarifications on the interpretation and application of these statutes.

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