Dividend Declaration

This query is : Resolved

Harish Naidu (Querist)
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24 May 2011 Please let me know, what is the maximum percentage of Dividend that can be declared by a Pvt Ltd Company.

Please let me know in the below case:

Paid-up Capital of the Company - 1.65 cr

Profits after all adjustments - 3.20 cr (after providing depreciation, set off previous losses etc)

As per the Secretarial Standard on Dividends, 10% of the profits should be transferred to reserves if Dividend Proposed is more than 20% of Paidup Capital of the Company. Please let me know if we can declare maximum amount after transferring 10% of Profits of 3.20 cr to Reserves or dividend declared should not exceed Paidup Capital of the Company.

udit sharma

udit sharma (Expert)
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25 May 2011 There is no such limit on the maximum percentage of dividend which can be declared by the Company. In my opinion..... amount of dividend declared may exceed the paid up capital of the Company.