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Interest out of Capital

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(Querist)
07 August 2010 Can a company pay to the share holders interest out of cpital? Is there any provision in Companies Act 1956 in relation to this? Please let me know, if any.
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Ankur Garg

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Ankur Garg (Expert)
07 August 2010 Hi,

You are requested to refer section 208 of the companies act, 1956 for your query. This section deals with payment of interest out of capital in certain cases.

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