07-03-2006, 11:02 PM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Abdur.Rehman</i>
<br />Dividend once proposed by the director cannot be cancelled as per company law. Approval of shareholders is just a formality. So, i dont c a point in not recognizing a liability, if the BOD has proposed dividend before balance sheet date.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Its not the case AbdurRehman! In company law it is written that Shareholders cant approve dividend in excess of dividend proposed by BOD. Its not the case that they cant disapprove!
<br />Dividend once proposed by the director cannot be cancelled as per company law. Approval of shareholders is just a formality. So, i dont c a point in not recognizing a liability, if the BOD has proposed dividend before balance sheet date.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Its not the case AbdurRehman! In company law it is written that Shareholders cant approve dividend in excess of dividend proposed by BOD. Its not the case that they cant disapprove!