Dividends payable only from distributable profits after depreciation and reserve transfers, with strict payment and transfer rules. Dividends are payable only from current year profits after providing for depreciation, from prior undistributed profits similarly computed, or from government moneys under guarantee; depreciation must be provided in prescribed ways and a prescribed percentage of profits may be transferred to reserves before dividend declaration. Securities premium account balances are not distributable as dividend. Declared dividends become debts payable within thirty days, unpaid amounts must be transferred to a special unpaid dividend account, dividends must be paid in cash to registered shareholders or their bankers, and unpaid sums may be credited to an Investor Education and Protection Fund.
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.
Dividends payable only from distributable profits after depreciation and reserve transfers, with strict payment and transfer rules.
Dividends are payable only from current year profits after providing for depreciation, from prior undistributed profits similarly computed, or from government moneys under guarantee; depreciation must be provided in prescribed ways and a prescribed percentage of profits may be transferred to reserves before dividend declaration. Securities premium account balances are not distributable as dividend. Declared dividends become debts payable within thirty days, unpaid amounts must be transferred to a special unpaid dividend account, dividends must be paid in cash to registered shareholders or their bankers, and unpaid sums may be credited to an Investor Education and Protection Fund.
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