Dividend payment

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preeti sharma (Querist)
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19 September 2013 A private company has paid dividend from its current account instead from a seperate account? what are its effect?how ow to deal with this situation?

Ajay Mishra

Ajay Mishra (Expert)
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19 September 2013 How he can pay dividend from such account. Firstly you decide that, then you deal with that situation.

Generally it is not possible that a company pay dividend from current account. Your auditor can raise objection in this regard.

Before paying dividend, their is provision of transfer of some percentage of profit to regerve.

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