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Dividend may be paid out of current profit, or out of previous year/s profit or out of money provided by the C.G. or by S.G. for the payment of dividend, after providing for the provisions for the depreciation and transfer to reserve.
Recommended by the Board.
Closure of register of members U/s 154 of the Act or fix a record date by giving at least 7 days newspaper advertisements, one in English and one in Local language.
Declared by the AGM
Once Declared by the AGM it becomes a debt on company
Open a separate Bank account & deposit the amount of dividend to the account with 5 days of recommendation of board. Account Name вЂњXYZ Co. Pvt. /Ltd. Dividend Account.вЂќ
The AGM may approve the rate of dividend at the rate lower then the recommended.
The Dividend Tax