Can a govt company declare dividend out of accumulated profits in case of inadequacy or absence of profit in a FY..??
Replies (4)
Guest
no bcoz govt company comes in exception of second proviso to sec123(1) now it is proviso by which company can declared dividend out of accu profit but this proviso not apply to govt company.
but in 2nd proviso it is mentioned that co. can declare dividend out of accu profits IN ACCORDANCE WITH THE RULES AS MAY BE PRESCRIBED... there r 4 rules, as u know..
Exception - Govt company..
what if i say that, here exception means govt can does not need to follow such rules(4 rules)...
I don't know..😫😥😫
Guest
no it is not like that the govt co cant distribute dividend from accu profit at all.
CAclubindia
