How to distribute reserve & surplus ?

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jayesh shah (Querist)
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03 July 2012 Sir ,
My client is Pvt limited company , closely held company No busines operation since last one Year. Sahre capital is Rs,200000+ Reserve & surplus Rs.1800,000/- represted by Bank Balance of Rs.20,00,000/- on assets . There is no other assets and liabilites.
How to distribute Reserve & surplus of rS.1800,000 to share holders ?

Jayesh Shah

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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03 July 2012 You can buy back the shares issued earlier to the maximum extent possible u/s 77A of Companies Act, 1956.

Dividend can also be distributed but there are many restrictions for distributing dividend.