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Declaration of dividend - regarding
If a company has defaulted in repayment of public deposits as accepted before the commencement of new act, Can BOD declare the dividend @ 20% to the equity shareholders ? Please explain me this question clearly with section of the ACT.
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PROHIBITION ON DIVIDEND:
A company which has default under Section 73 and 74 related to deposit and repayment of deposit or interest thereon may not declare dividend.
A company cannot declare dividend if the company fails to comply with acceptance of deposits and repayment of deposits accepted prior to the commencement of this Act. (section 73 & 74 of Companies Act 2013.
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