Who decides if and how much dividends should be paid?

Question

Quizplus · Accepted Answer

The board of directors is responsible for making decisions regarding the payment of dividends. They are elected by shareholders and are responsible for managing the affairs of the company, including the allocation of profits to shareholders in the form of dividends. The CEO and finance department may be involved in the decision-making process, but ultimately, it is the board of directors who has the authority to make these decisions. Shareholders have the right to vote on dividend proposals, but they do not have the power to make the final decision.

Who Decides If and How Much Dividends Should Be Paid