Download Secretarial Standard on Dividend (SS-3) Released by ICSI

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The Institute of Company Secretaries of India (ICSI) recently released the Secretarial Standard on Dividend for its members.
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“Dividend” means a distribution of any sums to Members out of profits and wherever permitted out of free reserves available for the purpose.
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“Final Dividend” means the Dividend recommended by the Board of Directors and declared by the Members at an Annual General Meeting.
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“Interim Dividend” means the Dividend declared by the Board of Directors.
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This Standard prescribes a set of principles in relation to the declaration and payment of Dividend and matters related thereto.
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The principles set out herein relate to declaration and payment of Dividend on equity as well as preference share capital in accordance with the provisions of the Act and are in respect of Dividend as it relates to a going concern. These are equally applicable to Final as well as Interim Dividend unless otherwise stated. The principles enunciated in this Standard are in conformity with the provisions of the Act. In addition, the provisions of the Securities Contracts (Regulation) Act, 1956 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are applicable to listed companies. Any specific provision relating to Dividend in the Income- tax Act, 1961 or under any other statute shall also be applicable. If due to subsequent changes in the Act or other applicable laws, a particular Standard or any part thereof becomes inconsistent with the Act or other applicable laws, the provisions of the Act or such applicable laws shall prevail.
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This standard shall not apply to a company limited by guarantee not having share capital and does not deal with Dividend, if any, declared by companies under liquidation.
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CLICK BELOW to Download Full SS-3 in pdf Format
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