Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Payment of Dividend Two times from the same profits of a particular financial year

302 views

Save Share

Sanjib Kumar Mondal

Passionate Learner

75 Points Posted on 30 May 2018

Hello,

Can a company pay dividend twice
from the same profits of a particular financial year ?

I mean that if a company already paid dividend for FY 2016-17 in 17-18fy and
again proposed in 2018-19 to pay dividend on the residual profit of 2016-17 after paying that previous dividend.

Can the company do so?

Thanks in advance.

Replies (4)

Aditi

Student

205 Points Posted on 30 May 2018

company suffering losses may pay out of reserves and accumulated profits(in this cases residual profits of 16-17) aftr complting with rule 3 of co.(payment of dividend) rules

Sanjib Kumar Mondal

Passionate Learner

75 Points Posted on 30 May 2018

But my query was if a company can pay a low rate of dividend for a financial year and later on (after 1 or 2 financial years) pay some dividend again pertaining to that particular financial year?

Aditi

Student

205 Points Posted on 30 May 2018

but these things are internal decisions of directors naa , they wontbe telling to shareholders aboit such arrangements , just declare dividend at any rate either from current year profits or from accumulated profits, the resolution will not state that it is additional dividend for the previous year, aftrol shareholders are concerned with dividend pertaining to whatever year