धारा 363

Section 363 of the Companies Act, 2013, provides that 'no company shall declare dividend, whether interim or final, except in accordance with the provisions of this Act and out of the profits of the company for that year or out of the undistributed profits of any previous financial year or years.' The section further states that 'the dividend shall be deposited in a separate bank account within five days from the date of its declaration and shall be paid within thirty days from the date of declaration and in case the company fails to pay the dividend within the said period, the company shall be liable to pay interest on the unpaid amount.' The section aims to ensure that companies declare dividends only out of their profits and in accordance with the provisions of the Act.