Payment of dividend

This query is : Resolved

Debanuj (Querist)
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25 June 2012 can dividends be paid for past years for which accounts is closed and adopted in AGM?...suppose i want to pay dividend for 2009-10 now
what to do?
can i pay out of reserve for that?
is there any legal provision anywhere restricting that?

Sanjay Chauhan (IFRS)

Sanjay Chauhan (IFRS) (Expert)
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27 June 2012 Dividend can be paid out of past years profit ie reserves.

However it cannot be said that it is previous year's dividend.

Dividend declared in any year pertains to that year. The amount of dividend which requires assessment of eligible profits. If current year's profit falls short, it looks up for previous period's retained profits after depreciation.