business
Revocation or cancellation of declared divided
<p>Can dividend once declared be revoked or cancelled?and  tell me some cases if any.</p>

<p>In the UK: "Under section 277 of the Companies Act 1985, where a shareholder knows or has reasonable grounds for believing that a dividend was improperly paid, he is liable to repay it to the company."</p>

<p>So if the company declared a dividend based on incorrect knowledge of their financial position, and they find out their true financial position that wouldn't allow a dividend payment, not only can (and must) they revoke or cancel the dividend payment, they can even force shareholders to repay the dividend. </p>

<p>But that only applies if the declared dividend is more than the company is legally allowed to pay. The company might say "we have enough cash in the bank and no debt, we could pay a £10.00 dividend without breaking the law, but we only pay £0.50". If they discover their numbers are wrong, and they could only pay £8.00 legally, then they can't change their declared dividend from £0.50 to £0.40. The declared dividend is legally binding, <em>except</em> when the dividend amount is too high to be legally allowed. </p>
