Declaration of dividend
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 August 2015
Can anyone pls let me know about this point clearly.
The total amount to be drawn from such accumulated profits shall not exceed one-tenth of the sum of its paid-up share capital and free reserves as appearing in the latest audited financial statement.
It means that the amount to be paid as dividend should not excced 10 per of paid up capital & free reserves of last audited financial statements?
The total amount to be drawn from such accumulated profits shall not exceed one-tenth of the sum of its paid-up share capital and free reserves as appearing in the latest audited financial statement.
It means that the amount to be paid as dividend should not excced 10 per of paid up capital & free reserves of last audited financial statements?
07 August 2015
Your interpretation seems to be wrong.
The interpretation shall be :
Dividend can be declared or paid exceeding 10%. However, if current years profits are not sufficient then previous years accumulated can be used upto 10% of paid up capital & free reserves of last audited financial statements.
Hence dividend can exceed limit of 10% but withdrawl of profit from previous year shall not exceed 10% limit.
The interpretation shall be :
Dividend can be declared or paid exceeding 10%. However, if current years profits are not sufficient then previous years accumulated can be used upto 10% of paid up capital & free reserves of last audited financial statements.
Hence dividend can exceed limit of 10% but withdrawl of profit from previous year shall not exceed 10% limit.
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 August 2015
Actually we want to decalre 100 percent dividend for the FY 2014-15 and we have sufficient profits to do so, & last year we declared 50% of paid up share capital as dividend so in this year can we decalre 100%?
08 August 2015
In the plain reading of sec 123 of Companies Act, 2013 you are allowed to declare dividend of 100% out of current year profits.
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