Declaration of dividend - regarding
vamsikrishna (Article Asisstant) (55 Points)
25 March 2016vamsikrishna (Article Asisstant) (55 Points)
25 March 2016
Megha Choudhary
(Management Trainee)
(541 Points)
Replied 26 March 2016
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.