dividend
This query is : Open
20 December 2009
can a company declare 100% of its profit as dividend?
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.
20 December 2009
Agree
20 December 2009
agree
20 December 2009
Out of total products only 80% can be distributed as dividend and 20% has to be transferred to general reserve.
Message likes :
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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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