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?
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.
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