https://www.taxtmi.com/article/detailed?id=5783 Dividend may be declared only from current profits after depreciation, prior undistributed profits, both, or government provided funds; payment from reserves is limited to free reserves. Rule 3 allows drawing on free reserves when profits are inadequate, subject to constraints on rate, quantum, set off for losses, and minimum reserve maintenance. Declared dividends must be deposited in a scheduled bank separate account and paid to registered shareholders; unclaimed amounts must be transferred to a Unpaid Dividend Account and ultimately to the Investor Education and Protection Fund after a prescribed period. Noncompliance triggers penalties on the company and officers and, for knowing defaults in payment, criminal liability for directors, subject to specified exceptions. en-us Sun, 17 Aug 2014 08:37:16 +0530 Sun, 17 Aug 2014 08:37:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=5783 Dividend may be declared only from current profits after depreciation, prior undistributed profits, both, or government provided funds; payment from reserves is limited to free reserves. Rule 3 allows drawing on free reserves when profits are inadequate, subject to constraints on rate, quantum, set off for losses, and minimum reserve maintenance. Declared dividends must be deposited in a scheduled bank separate account and paid to registered shareholders; unclaimed amounts must be transferred to a Unpaid Dividend Account and ultimately to the Investor Education and Protection Fund after a prescribed period. Noncompliance triggers penalties on the company and officers and, for knowing defaults in payment, criminal liability for directors, subject to specified exceptions. Articles Corporate Laws / IBC / SEBI Sun, 17 Aug 2014 08:37:16 +0530 https://www.taxtmi.com/article/detailed?id=5783