Distribution of dividend.
NEiL Arya (4 Points)
14 July 2023
Hello sir/madam, Can a company borrow funds from a bank and distribute it as dividends to shareholders? is it possible.
Jatin Bajaj
(CS)
(2930 Points)
Replied 21 July 2023
No, Company cannot do so. As per section 123 of the Companies Act 2013, a Company can distribute the dividend out of the current profit of the Company or accumulated profits of the previous yeart.
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