Dividend reserve obligations require transfers from after-tax current profits and exclude certain reserve categories from compliance. Obligations require providing arrears of depreciation before computing profits for reserve transfer; current profits mean after tax profits after statutory transfer to development rebate reserve. Dividend reference includes equity and participating preference dividends. Transfers to development rebate, capital or special reserves do not meet the transfer requirement. No transfer is required if proposed dividend is under ten percent; a company may voluntarily transfer a higher percentage. Declaration is necessary for rule 3(i). Rules coexist with the Temporary Restrictions on Dividend Act where consistent, and carrying forward remaining profits is permitted. Query on excluding no dividend years answered in the negative.
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Provisions expressly mentioned in the judgment/order text.
Dividend reserve obligations require transfers from after-tax current profits and exclude certain reserve categories from compliance.
Obligations require providing arrears of depreciation before computing profits for reserve transfer; current profits mean after tax profits after statutory transfer to development rebate reserve. Dividend reference includes equity and participating preference dividends. Transfers to development rebate, capital or special reserves do not meet the transfer requirement. No transfer is required if proposed dividend is under ten percent; a company may voluntarily transfer a higher percentage. Declaration is necessary for rule 3(i). Rules coexist with the Temporary Restrictions on Dividend Act where consistent, and carrying forward remaining profits is permitted. Query on excluding no dividend years answered in the negative.
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