Dividends ‑ Declaration of ‑ Transfer to reserves of certain percentage of profits ‑ Queries arising from the Companies (Transfer of Profits to Reserves) Rules, 1975 and the Companies (Declaration of Dividend out of Reserves) Rules, 1975
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Voluntary higher reserve transfers permitted subject to government rules, proviso enables transfers beyond the prescribed limit. Section 205(2A) includes a proviso enabling a company to make a voluntary transfer of a higher percentage of annual profits to reserves, subject to rules made by the Central Government; the department confirmed the proviso is not a drafting error and that voluntary higher transfers remain permissible in accordance with those rules.
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.
Voluntary higher reserve transfers permitted subject to government rules, proviso enables transfers beyond the prescribed limit.
Section 205(2A) includes a proviso enabling a company to make a voluntary transfer of a higher percentage of annual profits to reserves, subject to rules made by the Central Government; the department confirmed the proviso is not a drafting error and that voluntary higher transfers remain permissible in accordance with those rules.
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