Dividend declaration in case of loss
This query is : Resolved
Dhiraj kumar
(Querist)
23 August 2014
Dear Sir,
I want to know that as per section 205 of the companies act, 1956 there is requiremnt of transfer of certain amount in percentage to general reserve out of current profit before providing for dividend.
But what is the process if company has made loss in the current year and it does not have current profit, however company wishes to provide for dividend out of its accumulated profit.
Please reply !!
Its Urgent!!
With Regards
Dhiraj Kumar
I want to know that as per section 205 of the companies act, 1956 there is requiremnt of transfer of certain amount in percentage to general reserve out of current profit before providing for dividend.
But what is the process if company has made loss in the current year and it does not have current profit, however company wishes to provide for dividend out of its accumulated profit.
Please reply !!
Its Urgent!!
With Regards
Dhiraj Kumar
CA R SEETHARAMAN
(Expert)
26 August 2014
See Rule 8.1 Companies Act 2013.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- Nursery business
- Working on Gold wastage during Melting of old gold jewellery
- TDS on Dashcam rent and allied services
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- ETDS return q4 25-26
- Intimation under section 245
- GST input credit on commercial property
- Section 269ST applicability for capital introduced by partner to his partnership firm
- GSTR-9C filing
- Royalty payments to the Mining Department for procurement of murum - GST input
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
