no transfer of dividend does not depends on board's decision
as per sec 205(2A) of Comapies Act, 1956 read with Companies (Transfer of Profits to Resrves) Rules, 1975 :
Sr. no. Prposed Dividend Transfer to Reserves(minimum)
a). upto 10% of paid up capital Not mandatory to transfer any
profits to reserves
b). 10% - 12.5% of paid up capital 2.5% of Profits
c). 12.5% - 15% of paid up capital 5% of Profits
d). 15% - 20% of paid up capital 7.5% of Profits
e). more than 20% of paid up capital 10% of profits
If the company thinks it fit to tarnsfer a higher percentage of profits to Resrves then it may do so.
It is also not necessary to utilise the statutory resrve in full provided it sholud not be against the interest of the company or shareholders or for the purpose it is created.
if some amount id reamined unutilised and it is expected taht there is no more any requirement to maintain such Stautory Reserve it can be transferred to General Resrve by passing a Special Resolution it would further lead to disclosure requirements in the financila statements of the company.