Payment of dividend in proportion to amount paid-up
Section 51 of the Companies Act, 2013 deals with payment of dividend in proportion to amount paid-up. A company may, if so authorised by its articles, pay dividends in proportion to the amount paid-up on each share. The Act came into force on 01 Apr 2014.
A company may, if so authorised by its articles, pay dividends in proportion to the amount paid-up on each share.
Section 51, The Companies Act, 2013 (Act 18 of 2013).
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… On 11.03.1885, the Resolution passed on the 25.02.1885, was confirmed. On a petition filed, seeking sanction of the Court for the proposed reduction of capital, the question arose whether there was compliance with Section 51 of the Companies Act, 1862. The said provision, inter alia , required confirmation of the Resolution at a subsequent General Body Meeting which was held at an interval of not less that fourteen days and not more than one month from the date of the meeting at which the Resolution was first passed. <span …
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… On 11.03.1885, the Resolution passed on the 25.02.1885, was confirmed. On a petition filed, seeking sanction of the Court for the proposed reduction of capital, the question arose whether there was compliance with Section 51 of the Companies Act, 1862. The said provision, inter alia , required confirmation of the Resolution at a subsequent General Body Meeting which was held at an interval of not less that fourteen days and not more than one month from the date of the meeting at which the Resolution was first passed. <span …
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… On 11.03.1885, the Resolution passed on the 25.02.1885, was confirmed. On a petition filed, seeking sanction of the Court for the proposed reduction of capital, the question arose whether there was compliance with Section 51 of the Companies Act, 1862. The said provision, inter alia , required confirmation of the Resolution at a subsequent General Body Meeting which was held at an interval of not less that fourteen days and not more than one month from the date of the meeting at which the Resolution was first passed. <span …
Made under this section, and citing it
5 instruments name this provision in its title or its text without being made under it.
- G.S.R. NO. 663(E) The Companies (Acceptance of Deposits) Amendment Rules, 2022 dated 29.08.2022Rule 2022
- commencement notification dt 21.12.2020Notification 2020
- Companies (Acceptance of Deposits),Amendment Rules, 2019Rule 2019
- Commencement Notification dated 09.02.2018Notification 2018
- Companies (Arrests in connection with investigation by SFIO) Rules 2017Rule 2017
Questions about Section 51
What does Section 51 of the Companies Act deal with?
Section 51 of the Companies Act is headed "Payment of dividend in proportion to amount paid-up". A company may, if so authorised by its articles, pay dividends in proportion to the amount paid-up on each share.
How do I find court cases under Section 51 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 51, section 51 Companies Act, section 51 of the Companies Act. People searching for it also type companies act 2 51. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 51 of the Companies Act, and has it changed?
5 instruments name it without being made under it, most recently G.S.R. NO. 663(E) The Companies (Acceptance of Deposits) Amendment Rules, 2022 dated 29.08.2022 (2022), then commencement notification dt 21.12.2020 (2020).
When did Section 51 of the Companies Act come into force?
Section 51 of the Companies Act, cited as Companies Act 51, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.