A dividend creates a debt towards the shareholders. Hence, once declared a dividend can not be revoked.
Exception:-
(1)Â Â Â Â In can be revoked with the consent of the shareholders.
(2)Â Â Â Â It can be revoked where it has been declared illegally.
(3)Â Â Â Â It can be revoked in the event of outbreak of war, imposition of taxes, etc where it is better to conserve assets.
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