https://www.taxtmi.com/acts?id=18442 Rule 3 allows dividend declaration from free reserves when annual profits are inadequate, subject to conditions: the dividend rate must not exceed the average rate declared in the three preceding years (with an exception where no dividends were declared in those years); total draw from accumulated profits is capped at one tenth of paid up share capital plus free reserves per the latest audited accounts; withdrawals must first offset current year losses; and post withdrawal reserves must not fall below fifteen per cent of paid up share capital. en-us Tue, 01 Apr 2014 09:15:02 +0530 Thu, 12 Mar 2026 12:44:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/acts?id=18442 Rule 3 allows dividend declaration from free reserves when annual profits are inadequate, subject to conditions: the dividend rate must not exceed the average rate declared in the three preceding years (with an exception where no dividends were declared in those years); total draw from accumulated profits is capped at one tenth of paid up share capital plus free reserves per the latest audited accounts; withdrawals must first offset current year losses; and post withdrawal reserves must not fall below fifteen per cent of paid up share capital. Act-Rules Companies Law Tue, 01 Apr 2014 09:15:02 +0530 https://www.taxtmi.com/acts?id=18442