Dividend distribution
This query is : Resolved
01 February 2017
Dear Experts,
One private limited company wants to distribute interim dividend to its shareholders. It just want to distribute 90% of Reserve and Surplus as dividend. Whether it can distribute ?? What other conditions need to be fulfilled ??
Kindly Guid.
Thanks in advance
One private limited company wants to distribute interim dividend to its shareholders. It just want to distribute 90% of Reserve and Surplus as dividend. Whether it can distribute ?? What other conditions need to be fulfilled ??
Kindly Guid.
Thanks in advance
02 February 2017
aS PER SECTION 123 , READ WITH dIVIDEND rULES, a bOARD MAY DECLARE INTERIM DIVIDEND DURING ANY FINANCIAL YEAR OUT OF SURPLUS IN PROFIT AND LOSS ACCOUNT AND OUT OF PROFIT IN THE FINANCIAL YEAR IN WHICH SUCH INTERIM DIVIDEND IS SOUGHT TO BE DECLARED.
THE RATE OF DIVIDEND DECLARED SHALL NOT EXCEED THE AVERAGE RATE OF DIVIDEND DECLARED DURING THE LAST 3 YEARS PREECEDING THE PREVIOUS YEAR.
THE TOTAL AMOUNT DRAWN FROM ACCUMULATED PROFIT SHALL NOT EXCEED 1/10 OF PAID UP SHARE CAPITAL AND FREE RESERVES.
THE BALANCE OF RESERVES AFTER WITHDRAWN SHALL NOT FALL BELOW 15% OF ITS PAID UP SHARE CAPITAL
THE RATE OF DIVIDEND DECLARED SHALL NOT EXCEED THE AVERAGE RATE OF DIVIDEND DECLARED DURING THE LAST 3 YEARS PREECEDING THE PREVIOUS YEAR.
THE TOTAL AMOUNT DRAWN FROM ACCUMULATED PROFIT SHALL NOT EXCEED 1/10 OF PAID UP SHARE CAPITAL AND FREE RESERVES.
THE BALANCE OF RESERVES AFTER WITHDRAWN SHALL NOT FALL BELOW 15% OF ITS PAID UP SHARE CAPITAL
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- SFT Cash Deposit in Current Account
- Annual return in Gst
- FORM 26A APPLICABILITY
- When TDS on GST applied
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
