Div distribution


This query is : Resolved 

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

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.

29 October 2009 Maximum amount you can drawn for dividend from reserve is Rs. 2,60,000.


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