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Literal meaning of ‘Dividend’ means shareholders’ share of profits payable from the profits of the company. However, there can be two types of dividend, one that is paid in relation to going concern based activities i.e. normal business activities and the other one at the time of liquidation of the company in relation to shareholders’ share in the company.

As defined u/s 2(35) of Companies Act, 2013, “dividend” includes any interim dividend;

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