Plz help

no..profit on re-issue of shares is a capital profit..!

Dear Faiyaz,

Surplus on re-issue of shares is transferred to capital reserve.

Capital reserve is a reserve of a corporate enterprise which cannot be used for distribution of profit.

I agree with Kajri........................

no.....its a capital profit.

it can be distributed

even i go wid other members...

it cannot be used

it's right

Me too agree with Kajri and other frnds.,

it can't be distributed

 No 

Dear All,

As per the provision of Companies Act, 1956 the amount remaining to the credit of Share Forfieted A/c after applying for discount on re-issue must be transferred to Capital Reserve A/c. So it can not be used for Divivdend Distribution because Capital Reserve A/c have restricted use and only Free reserves can be used for distribution of dividends.

Thanx

hi guys

all the views expressed above r correct to some extent. but as per the case cited above, amount remaining to the credit of share forfieted a/c can be used to distribute the dividend.