Dividend From Capital Reserve
This query is : Resolved
CA Mayur Sojrani
(Querist)
01 June 2009
Helloe Friends
My Query is
Can Dividend Can be Distributed From Capital Reserve ?
If Can Be Declare States the Circumstances as per the companies Act ,
1956 , under which it cac be declared or not?
My Query is
Can Dividend Can be Distributed From Capital Reserve ?
If Can Be Declare States the Circumstances as per the companies Act ,
1956 , under which it cac be declared or not?
01 June 2009
No. Pl refer explanation to rule 2 of Companies (Declaration of dividend out of reserves)Rules,1975.
Ankur Garg
(Expert)
03 June 2009
Agree with Mr. Warrier.
As it is clearly prohibited by the explanation referred above.
As it is clearly prohibited by the explanation referred above.
CA Nitin Wadhwani
(Expert)
05 June 2009
If the capital reserve is realised in cash, then dividend can be declared from it.
No Prohibition on it then.
No Prohibition on it then.
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