Dividends Declaration of Transfer to reserves of certain percentage of profits Queries arising from the Companies (Transfer of Profits to Reserves) Rules, 1975 and the Companies (Declaration of Dividend out of Reserves) Rules, 1975

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....8209; Declaration of ‑ Transfer to reserves of certain percentage of profits ‑ Queries arising from the Companies (Transfer of Profits to Reserves) Rules, 1975 and the Companies (Declaration of Dividend out of Reserves) Rules, 1975 answered Query: On a plain reading of rule 2, it appears that no obligation is cast on companies to transfer any amount from its current profits to reserve....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ain the rate of dividend calculated at the average rate of dividend declared by the company for the three years immediately preceding the current year, where the capital base has been increased on account of issue of bonus/right shares. Answer: In regard to the Transfer of Profits to Reserves Rules, the presumption made in (a) above is confirmed. As for item (b) goes, contention that clause 3 of ....