SlideShare a Scribd company logo
• Dividend shall be declared or paid by a company for any
financial year out of the profits of the company for that
year arrived at after providing for depreciation
• Out of money provided by the Central Government or a
State Government for the payment of dividend by the
company
• The rate of dividend declared shall not exceed the average of the
rates at which dividend was declared by it in the three years
• The total amount to be drawn from such accumulated profits shall not
exceed one-tenth of the sum of its paid-up share capital and free
reserves as appearing in the latest audited financial statement
• The amount so drawn shall first be utilized to set off the losses
incurred in the financial year in which dividend is declared before any
dividend
• The balance of reserves after such withdrawal shall not fall below
fifteen per cent of its paid up share capital
• No company shall declare dividend unless
carried over previous losses and depreciation
not provided in previous year are set off
against profit of the company of the current
year the loss or depreciation, whichever is
less
• Statement of amounts to be credited to
investor education and protection fund shall
be filed in Form DIV 5.
THANKSFor Further Details Contact :01143558440,
9971504105 proglobalcorp@gmail.com

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DECLARATION AND PAYMENT OF DIVIDEND COMPANIES ACT 2013

  • 1.
  • 2. • Dividend shall be declared or paid by a company for any financial year out of the profits of the company for that year arrived at after providing for depreciation • Out of money provided by the Central Government or a State Government for the payment of dividend by the company
  • 3. • The rate of dividend declared shall not exceed the average of the rates at which dividend was declared by it in the three years • The total amount to be drawn from such accumulated profits shall not exceed one-tenth of the sum of its paid-up share capital and free reserves as appearing in the latest audited financial statement • The amount so drawn shall first be utilized to set off the losses incurred in the financial year in which dividend is declared before any dividend • The balance of reserves after such withdrawal shall not fall below fifteen per cent of its paid up share capital
  • 4. • No company shall declare dividend unless carried over previous losses and depreciation not provided in previous year are set off against profit of the company of the current year the loss or depreciation, whichever is less • Statement of amounts to be credited to investor education and protection fund shall be filed in Form DIV 5.
  • 5. THANKSFor Further Details Contact :01143558440, 9971504105 proglobalcorp@gmail.com