Declared Dividend

Dividend that has been approved by the shareholders in the annual general meeting and thus awaiting payment to shareholders. Also called approved dividend.

This approval by shareholder follows the proposal by board of directors regarding dividend payout called proposed dividend. Usually the same is proposed and approved in the same meeting whereas in some cases proposed dividend may be announced before hand.

In some cases however such approval is not necessary if BOD is given such powers and dividends are declared by board of directors. This depends upon the procedures laid out in documents of association i.e. Memorandum of Association and Articles of Association.