14 May 2016
Hi, as per the companies act 2013, the company has been prescribed with rules to be followed in order to declare dividend out of accumulated profits but as per the amendment last year, the fifth condition of this rule relating to set off of losses of previous years has been dispensed off. What could be the reason for deleting it from here while the same condition is present under sec 123 to pay dividend from current year profit.
18 May 2016
As per my view , Section as a part of Act is substantial Law and the Rule is procedural law. Meaning thereby is something done by law, or by force of law, whether the hand that does it is willing or not is act in law and according the General Clauses Act the meaning of Rule is that “ a rule made in exercise of a power conferred by any enactment, and shall include a regulation made as a rule under any enactment. In case of contradiction in rules and Act , the provision of Act would prevail and apply accordingly.
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