A private Company wants to pay dividend without providing for depriciation.Now in this case, the Company needs to seek approval of the Central Government.
My question is, whether the Company shall file anything with ROC also or the form 23AAC will directly get go to the Central Government.
Once the Company gets approval from CG, is it necessary to inform ROC also.???
11 January 2010
It may be noted that as per the provisions of section 205 of the companies act 1956, dividend may be declared out of the current years profits only and after providing for depreciation, however in certain cases where there are no sufficient profits or ividend be declared out of past profits then a permission from the central govt is required to be obtained and out of profits transferred .
It may be further mentioned that section is silent as to the intimation to ROC after obtention of central govt permission, hence based on the provisions as to dividend declared out of current profits are intimated to ROC based on similar lines even after obtention of permission from CG the same be intimated to ROC.
11 January 2010
It may be noted that as per the provisions of section 205 of the companies act 1956, dividend may be declared out of the current years profits only and after providing for depreciation, however in certain cases where there are no sufficient profits or ividend be declared out of past profits then a permission from the central govt is required to be obtained and out of profits transferred .
It may be further mentioned that section is silent as to the intimation to ROC after obtention of central govt permission, hence based on the provisions as to dividend declared out of current profits are intimated to ROC based on similar lines even after obtention of permission from CG the same be intimated to ROC.
The correspondence obtained from Central govt may be forwarded to ROC
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