Compliance Requirements Section 123 Of Companies Act 2013 || Registerkaro.in

Companies must comply with the provisions of Section 123 when declaring and paying dividends. This includes obtaining approval from the board of directors, ensuring compliance with accounting standards, maintaining proper records, and disclosing dividend-related information in the company's financial statements. Failure to comply with the provisions of Section 123 may result in penalties for the company and its officers. If a company declares or pays dividends in contravention of the Act, the company and every officer responsible for such contravention may be liable to pay a fine or face imprisonment, or both.