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.
2 Replies
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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