CAF-4 · Chapter 23 · Question 5 of 7
If the Chief Executive Officer (CEO) of a listed company willfully delays the payment of a declared dividend beyond the stipulated 10 working days, what is the statutory penalty?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Imprisonment up to 2 years, a fine up to Rs. 5 million, and ineligibility to be a director/CEO for 5 years.
Explanation
The law takes dividend delays seriously. The CEO can face up to 2 years imprisonment, a fine up to Rs. 5 million, and is rendered ineligible to be a director or CEO of any company for the next 5 years.
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