Each shareholder has an absolute right to annual dividends.

Name: Each shareholder has an absolute right to annual dividends.
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Question

Quizplus · Accepted Answer

Shareholders do not have an absolute right to annual dividends. It is up to the discretion of the company's board of directors to decide whether or not to declare dividends, and if so, the amount to be paid out. Dividends are also dependent on the company's financial performance and available profits.

Each Shareholder Has an Absolute Right to Annual Dividends