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Conditions for declaration of dividend

Corporate & Other Laws

When there are profits in a particular Financial year,Do we need to apply the three conditions mentioned in Rule 3 of declaration and payment of dividend rule

Gauri Shete

CA Final

★ 4K+

15-Nov-21 14:33

216

Answers (3)

Best Answer

If you are drawing up any amount from free reserves for dividend, conditions will be applicable

Sahibdeep Singh

CA Inter

★ 14K+

16-Nov-21 15:07

No it's applicable only when there is no profit Or Inadequacy of profit

Kumar G

CA Final

★ 12K+

15-Nov-21 15:27

Means when there are profits say 10 cr Can't we pay dividend of 15cr as we will be needing to draw it from any of the reserves and then the ratio should be mainted no

Thread Starter

Gauri Shete

CA Final

★ 4K+

15-Nov-21 20:17