Hello students,
many students are having doubts in dividend chapter.. i request if anyone can pls clarify the issue. it will be helpful to lot of students.
1) govt co is not required to follow " declaration and payment of dividend
rules" . What does it mean exactly?
Wherher govt co can pay dividend out of acc profits and it has no need to
follow these rules. OR it mean that fovt company cannot pay dividend out of
past reserves.
Ans given in law rtp is " govt co cannot declare dividend out of acc
profits " . And many faculties are saying that this ans is wrong.
Please help ☺
2) fourth proviso to section 123 says that the comalny has to adjust past
losses AND depreciation from current year profits.
but what we students have been taught in law classes that the company
will adjust past losses OR depreciation whichever is lower
pls help us..we are really not sure what to do for these two.
CAclubindia
