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Gautham

Gautham (Querist)
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20 December 2009 can a company declare 100% of its profit as dividend?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 December 2009 No. Why because the company has to comply the mandatory provisions of the Companies (Transfer of profits to Reserve ) Rules issued under section 205 of the Companies Act,1956.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 December 2009 Agree

ANIL JANGID

ANIL JANGID (Expert)
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20 December 2009 agree

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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20 December 2009 Out of total products only 80% can be distributed as dividend and 20% has to be transferred to general reserve.

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NEHA SARAF (Mcom, CA , CS)

NEHA SARAF (Mcom, CA , CS) (Expert)
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21 December 2009 No comapny cannot declare 100 % dividend it has to transfer requisite % to reserves .... Also Logically u can see that it is not viable for any comapny to declare 100 % dividend

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