Kiran Deven Balkat (Lt-Deven) (21 Points)
16 July 2021Hey, I have a pvt company with paid up capital in shares of 15 Lakhs (3 equal shareholders). But the bank balance is 85 Lakhs. I would like to withdraw 60 Lakhs (between us) but have been told this is not possible as capital is 15 Lakhs and the company cannot withdraw more than that in a year.
Is this right? I there an alternative to a dividend?
Thanks, Kiran
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 17 July 2021
You have to write to the tribunal and take permission,
you can reduce the share capital by letting hem know that you want to pay off any paid-up share capital which is in excess of the wants of the company,
This is the first me alternative I can find currently from companies act.
https://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 17 July 2021
Did you mean 15 lakhs inr? Sorry, I thought it was share number. Now, section 123 proclaims that, dividends can be given out of accumulated and current years profits, that’s why you can withdraw that amount.
Now you can take advance remuneration and adjust future salary with this amount by taking very less salary.
https://www.caclubindia.com/forum/how-can-a-director-md-withdraw-money-from-pvt-ltd-curr-acct-340520.asp
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