Dear Professional,
Please clarify my doubt regarding payment of dividend out of reserves..
The rate of dividend declare shall not exceed the average of the rates at which dividend was declared in 3 immediate preceding year.
However this rule is not applicable to a company which has not declared any dividend in each of the 3 PFY.
Here what is a meaning of each of the 3 PFY ? All 3 PFY or any 3 PFY ??
Thank you
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Rule 3 of payment of dividend out of reserves
Replies (5)
It means one or more years. It means rule applies to co which paid dividend in all 3 years.
Hello Sunil Sir,
Thank you for clarifying my doubt.
Regards,
Sudhir Todkar
Thank you for clarifying my doubt.
Regards,
Sudhir Todkar
in each of 3 fys doesn't mean in all 3 yrs?
proviso is applicable whn dividend is nt declared in all 3 yrs....
proviso is applicable whn dividend is nt declared in all 3 yrs....
in each of 3 fys doesn't mean in all 3 yrs?
proviso is applicable whn dividend is nt declared in all 3 yrs....
proviso is applicable whn dividend is nt declared in all 3 yrs....
It means if a company has paid dividend in only one or two previous years but not in all three previous years then the average rate is not to be calculated as this condition does not apply. However, other conditions will apply.
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