No statutory compulsion on companies to declare and pay dividends every year

Payment of Dividend by Companies

The data regarding companies which have not given dividend to their shareholders is not maintained in this Ministry. Further, there is no statutory compulsion on the companies under the Companies Act 1956 to declare and pay dividends to their shareholders every year.

This information was given by Minister of State for Corporate Affairs Shri R.P.N. Singh in reply to a written question in the Rajya Sabha today.