Dividend Declaration

Harish Naidu (Job) (193 Points)

28 March 2011  

I am the MD of a pvt ltd company with 8 share holders.  Our company has a PAT of around 3 crores for FY 10-11.  We had an investment of 7 crores by a Venture Capitalist in Oct 2010 for which we need to pay a Dividend of 40 lakhs.  After this PAT is around 2.6 Crores.  Please let me know what is the maximum percentage of dividend that can be declared out of this PAT for all the share holders and also procedure to be followed for declaring Dividend.