Companies Act Section 51 — Payment of dividend in proportion to amount paid-up

CHAPTER IV SHARE CAPITAL AND DEBENTURES

Commercial / Corporate

Summary

A company is allowed to pay dividends based on how much has actually been paid up on each share, but only if its articles of association give it permission to do so. This means the dividend amount can vary from share to share, depending on the amount paid by each shareholder, rather than being equal for all shares.

Official Text

A company may, if so authorised by its articles, pay dividends in proportion to the amount paid-up on each share.