directors

all covered in your CA finals corporate law study material.  Refer to that in the first place

Statutory provisions related to Dividend

Dividend can be paid out of the profits of the Company or out of the accumulated profits or under both

Interim Dividend can be paid at any time during the financial year out of the surplus mentioned in the profit and loss account.

The amount of dividend shall be deposited within 5 days from date of declaration of dividend in a seprate bank account.

Dividend can only be paid to registered shareholders

In case of inadequate profits or losses then the rate of dividend shall not exceed the average rate of dividend paid during the last 3 years immediately preceeding that year and the amount drawn from accumulated profit shall not exceed 10% of the paid up share capital and free reserves as per last audited balance sheet.

After dividend reserves shall not be less than 15 % of the paid up share capital and free reserves