<h1>Amendments to Companies Dividend Rules: Align Rule 3 with Section 123; Clarify Dividend Declaration from Accumulated Profits.</h1> Proposed amendments to the Companies (Declaration and Payment of Dividend) Rules, 2014, suggest aligning Rule 3 with Section 123 of the Act to clarify the conditions under which dividends can be declared from accumulated profits. The Committee recommends that Rule 3 should apply only when dividends are declared from profits transferred to reserves, not from the surplus in the profit and loss account. Additionally, the Committee decided against extending exemptions from the second proviso of Section 123(1) to non-wholly owned Government companies, maintaining consistency with previous legislation.