Share premium cannot be utilised for declaring dividend otherwise it will be treated as violation of statute where auditor should qualify his audit report. But my question is if it declared for dividend then kya sirf qualify kar ne se sab khatam ho jayega? Galti to hui hai to uske liye aur kuch nahi hoga? Can company call dividend back?
Thank you everyone whosoever replies me.
harpreet singh
(Revenue Accountant at PSPCL)
(593 Points)
Replied 04 May 2011
dividend declared become debt of the company and it can not be revoked except with the cosent of shareholder.. however if any dividend is declared ultra vires the act then director would be held personaly liable as they proposed dividend illegaly. so dividend won't be called back but would be recovered from the director.
harpreet singh
(Revenue Accountant at PSPCL)
(593 Points)
Replied 04 May 2011
pujit bhai company ke director itna garib nahi hotay.. dir ko max 400000 basic pay ek mahinay ka milta hai as per law.
jab tum final main aa jaogay yeah sarey doubts clear ho jayengay.. don't worry abhi inter main ho.. final main yeah sab cheez sochne ka time bhi nai milega.. enjoy pcc
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 05 May 2011
If the directors doesnot have sufficient amount, then the company can file a suit to recover the loss..
CAclubindia
