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Dividends from captial reserve

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(Querist)
21 April 2009 Dear all,
Under what conditions, captial reserve can be used for dividends.
Thanks
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Vishal Chaturvedi

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Vishal Chaturvedi (Expert)
22 April 2009 although capital reserve cannot be used to pay dividend but if it received in cash then only dividend can be paid out of it

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