Declaration and payment of dividend

Corporate & Other Laws

Can government company declare dividend, out of accumulated profits of last F.Y. ( due to inadequacy or absence of profit in current financial year )

Harsh Mittal

CA Final

★ 1K+

16-May-22 21:41

459

Answers (3)

When there is inadequacy or absence of profits, the company may declare dividend out of profits of any previous year transferred by it to free reserves after following the conditions prescribed in the Rule 3

ASMA HANIYA

CA Final

★ 12K+

16-May-22 22:56

Govt company can declare dividend in that circumstances (ex:- coal India Ltd.)

siva chaitanya

CA Final

★ 13K+

16-May-22 23:09

Yes But second proviso to Sec 123(1) and sub-section (4) provisions are not applicable to Govt. Company i.e transfer to reserves and deposit to schedule bank after declaration

Sudha Reddy

CA Final

★ 20K+

17-May-22 10:54