Amended and updated notes on section 51 of Companies Act 2013. Detail discussion on provisions and rules related to payment of dividend in proportion to amount paid-up.
Chapter IV (Sections 43–72) of the Companies Act, 2013 (CA 2013) deals with the provisions related to share capital and debentures. Section 51 of CA 2013 provides for payment of dividend in proportion to amount paid-up.
Recently, we have discussed in detail section 50 (Company to accept unpaid share capital, although not called up) of CA 2013. Today, we learn the provisions of section 51 of Companies Act 2013 read with the Companies (Share Capital and Debentures) Rules, 2014.
Section 51 of the Companies Act, 2013 has been notified by the Ministry of Corporate Affairs (MCA) vide Notification No. S.O. 2754(E) issued dated 12.09.2013. This notification was come into force from 12th September, 2013 i.e. the commencement date of section 51 is 12-09-2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | IV |
| Chapter Name | Share Capital and Debentures |
| Section No. | 51 |
| Section Name | Payment of dividend in proportion to amount paid-up |
| Monthly Updated Edition | Company Law PDF |
Section 51 of Companies Act 2013: Payment of dividend in proportion to amount paid-up
Section 51 shall come into force on 12th September, 2013 vide Notification No. S.O. 2754(E) dated 12.09.2013.
A company may, if so authorised by its articles, pay dividends in proportion to the amount paid-up on each share.