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Declaration of dividend must be from profits or free reserves, with interim limits and payment only to registered shareholders. Declaration of dividend is permitted only from profits for the year after providing for depreciation under Schedule II, from undistributed prior-year profits so provided, or from Government-guaranteed monies. Dividends may not be paid from reserves other than free reserves, and use of accumulated reserves when current profits are inadequate is subject to prescribed rules. Interim dividends may be declared from surplus and current-year profits with limits where the company has incurred current-year losses up to the preceding quarter. Declared dividends must be deposited in a scheduled bank within five days and paid in cash to the registered shareholder or his order; noncompliance with capital maintenance provisions bars dividend declaration.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Declaration of dividend must be from profits or free reserves, with interim limits and payment only to registered shareholders.
Declaration of dividend is permitted only from profits for the year after providing for depreciation under Schedule II, from undistributed prior-year profits so provided, or from Government-guaranteed monies. Dividends may not be paid from reserves other than free reserves, and use of accumulated reserves when current profits are inadequate is subject to prescribed rules. Interim dividends may be declared from surplus and current-year profits with limits where the company has incurred current-year losses up to the preceding quarter. Declared dividends must be deposited in a scheduled bank within five days and paid in cash to the registered shareholder or his order; noncompliance with capital maintenance provisions bars dividend declaration.
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