Menu
dividend revocation
if a company declares the dividened at the agm without providing for the DPR of current year which if provided would result into loss in the current year. can the BOD revoke it's decision
Replies (3)
also will the answer be different if the company doesn't have any accumulated profits?
Once a dividend is declared it becomes a liability for the company to pay the dividend within 30 days from the date of declaration.
Revocation is possible in 2 cases
1. in case of ultra virus.
2. in case the going concern of the company is affected.
In the given situation the dividend cannot be revoked , the company has to pay the dividend.
Revocation is possible in 2 cases
1. in case of ultra virus.
2. in case the going concern of the company is affected.
In the given situation the dividend cannot be revoked , the company has to pay the dividend.
but the dividened declared is not as per the provisions of section 123. will it make a difference?
Recent Threads
- Deferment period for Advance Tax under Section 234
- Permanant transfer of duty free goods by Advance A
- 1% TDS Deduction on Property purchase through inst
- Tax on leave encashment on retirement
- Guidance Required on Notices Under Section 234B Af
- Rcm invoices and normal invoice
- Regarding STCG on Equity
- GSTR 9 details with same PAN & different Turno
- Hotel ITC
- ITR for Trust- 12A
Related Threads
CAclubindia
