Dividend declaration under companies act 2013

Riyanshi Chaudhary (Company Secretary in Practice)   (30 Points)

29 September 2021  

Dear Sir/Mam,

 

I want to know that in our Pvt company , company have 1 crore accumulated profit , And this year company has only Rs. 1000 profit. But Company Board of Director want to withdraw the whole accumulated profit through declaration of Dividend. Can it be possible to declare whole amount as dividend whereof the Net Profit of this  year is Rs. 1000.

Please give your valuable opinion on the matter. How can we withdraw the whole amount of accumulated profit.

Please reply, It is urgently.