16 December 2014
hi, if a pvt ltd company wanted to declare interim divided of the company for the first time, from the accumulated Profit of the Previous Year and it does not transferred the profit to the Reserve of the company? Then what are the conditions and amount to which a company may declare Dividend? --
16 December 2014
Mandatory transfer to reserve is not required under Companies Act 2013. Companies are free to transfer such percentage of its profits for that financial year as it may consider appropriate to the reserves.
Interim dividend can be declared during any financial year out of the surplus in the profit and loss account and out of profits of the financial year in which the same is sought to be declared. Provided that in case the company incurs loss during the current financial year, upto the end of the quarter immediately preceding the date of declaration of interim dividend, then the interim dividend cannot be declared by the company at a rate higher than the average dividends declared during the immediately preceding three financial years
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