Dividend declaration under companies act 2013

Dear Sir/Mam,

 

I want to know that in our Pvt company , company have 1 crore accumulated profit , And this year company has only Rs. 1000 profit. But Company Board of Director want to withdraw the whole accumulated profit through declaration of Dividend. Can it be possible to declare whole amount as dividend whereof the Net Profit of this  year is Rs. 1000.

Please give your valuable opinion on the matter. How can we withdraw the whole amount of accumulated profit.

Please reply, It is urgently.

Replies (2)
Quick Summary
A private company with significant accumulated profits but a low net profit for the current year is seeking to declare dividends from its accumulated reserves. The query asks if it's permissible under the Companies Act 2013 to withdraw the entire accumulated profit as a dividend, referencing sections 123 to 127. Guidance is sought on the legality and process for such a declaration.

I think you should refer section 123 to section 127 of the companies act 2013 , with letest amendment ,and relevant companies rules . confirm with others also .

Thanks for yourreply

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