Div distribution

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anil khatri (Querist)
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28 October 2009 Does Companies (Declaration of Dividend out of Reserves) Rules, 1975 applies to a pvt limited co.
A pvt ltd co has paid up capital 1 lac & frree reserves of rs 25 lac. Company wants to declare rs 16 lac dividend.are there ant restrictions under co. act

Ankur Garg

Ankur Garg (Expert)
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29 October 2009 Yes Companies (Declaration of Dividend out of Reserves) Rules, 1975 applies to a pvt limited co.

You can declare dividend subject to 100% compliance of Companies (Declaration of Dividend out of Reserves) Rules, 1975.

Ankur Garg

Ankur Garg (Expert)
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29 October 2009 Maximum amount you can drawn for dividend from reserve is Rs. 2,60,000.