Final answer:
The Board of Directors' resolution to pay a dividend is passed on the declaration date, making it the formal decision point for dividend payments.
Step-by-step explanation:
The date on which the company's Board of Directors passes a resolution to pay a dividend is called the declaration date. This is the day when the company officially decides to pay a dividend, and the payment and its terms become a binding legal obligation. The declaration of dividends signals the report of earnings to shareholders and sets the record date, which is the date by which an investor must be on the company's books in order to receive a dividend. It is important to note that the declaration date is distinct from the ex-dividend date, which is the date on which shares start trading without the dividend included.