Dividend Declaration

Harish Naidu (Job) (193 Points)

24 May 2011  

Please let me know, what is the maximum percentage of Dividend that can be declared by a Pvt Ltd Company.


Please let me know in the below case:

Paid-up Capital of the Company -  1.65 cr

Profits after all adjustments  - 3.20 cr (after providing depreciation, set off previous losses etc)

As per the Secretarial Standard on Dividends, 10% of the profits should be transferred to reserves if Dividend Proposed is more than 20% of Paidup Capital of the Company.  Please let me know if we can declare maximum amount after transferring 10% of Profits of 3.20 cr to Reserves or dividend declared should not exceed Paidup Capital of the Company.