Dear Professionals,
Can a India Pvt. Ltd Company declare dividend and pay in kind or adjust the dividend against outstandings of shareholders (parent company which is holding 100% of its shares and what if parent is foreign compnay). Advise / Comments with reference to relevant provisions to new companies act 2013 or rules 2013 or any other act like FEMA or Income tax Act.
Thanks & Regards
Sec.123(5) of CA 2013 clearly provides that dividend shall not be payable except in cash. Further, Sec.123(4) also clearly provides that dividend shall be deposited in a separate Bank account (hence cannot be adjusted against dues of shareholders). There is no scope of any doubt on this.
ADY & CO.
New Delhi
Graduate (Any)
View Details
Malhotra Rajesh & Associates
New Delhi
B.Com
View Details
CCI
Pro
CAclubindia
