Companies (Declaration of Dividend Out of Reserves) Amendment Rules, 2006 - Amendments in rule 2; insertion of Form - GSR 134(E). - Companies Law

MINISTRY OF COMPANY AFFAIRS NOTIFICATION New Delhi, the 3 rd March, 2006 Subject:- Companies (Declaration of Dividend Out of Reserves) Amendment Rules, 2006 - Amendments in rule 2; insertion of Form GSR 134(E).- In exercise of the powers conferred by sub-section (3) of section 205A read with clause ( a ) of sub-section (1) of section 642 and 610A of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Declaration of Dividend Out of Reserves) Rules, 1975, namely: 1. (1) These rules may be called the Companies (Declaration of Dividend Out of Reserves) Amendment Rules, 2006. (2) They shall come into force on the date of their publication, in the Official Gazette. 2. In the Companies (Declaration of Dividend Out of Reserves) Rules, 1975 ( i ) after clause ( iii ) of rule 2, the following clauses shall be inserted, namely: ( iv ) The Forms prescribed in these rules may be filed through electronic media or through any other computer readable media as referred under section 610A of the Companies Act, 1956 (1 of 1956). ( v ) The electronic form shall be authenticated by the authorized signatories using digital signatures, as defined under the Information Technology Act, 2000 (21 of 2000). ( vi ) The Forms prescribed in these rules, when filed in physical form, may be authenticated by authorized signatory by affixing his signature manually. ( ii ) after the rules, the following Form shall be inserted, namely: Form Form of application for approval for declaration of dividend out of reserves [ Pursuant to section 205A(3) of the Companies Act, 1956 and the Companies (Declaration of Dividend out of Reserves) Rules, 1975 ] Note - All fields marked in *are to be mandatorily filled. 1. ( a ) *Corporate identity number (CIN) of company Pre-fill ( b ) Global location number (GLN) of company 2. ( a ) Name of the company ( b ) Address of the registered office of the company 3. *Capital structure (rupees in thousands) ( i ) *Paid-up capital ( ii ) Reserves and surplus ( a ) *Free reserves ( b ) *Other reserves 4. Indicate the rate and amount of proposed dividend and how it meets the condition(s) mentioned in the rule 2 of the Companies (Declaration of Dividend out of Reserves) Rules, 1975. ( a ) *Proposal of the company ( b ) Rate of proposed dividend ( c ) *Amount of proposed dividend ( d ) *Conditions for the non-compliance of which the application is being made 5. Justification for the proposal ( a ) When the company is in loss ( b ) When the profit is inadequate for declaring dividend at the proposed rate 6. *Amount of profits for the current and the amount proposed to be withdrawn from the general reserves ( a ) Amount proposed to be utilized ( b ) Amount proposed to be withdrawn Attachments 1. No objection letter from the company s lead financial institution Attach 2. Copy of board of directors resolution in support of the company s proposal Attach 3. Optional attachment(s) - if any Attach List of attachments Remove attachment Declaration To the best of my knowledge and belief, the information given in this application and its attachments is correct and complete. I have been authorised by the board of directors resolution dated * (DD/MM/YYYY) to sign and submit this application. To be digitally signed by Managing director or director or manager or secretary of the company Certificate It is hereby certified that I have verified the above particulars from the books of account and records of M/s. and found them to be true and correct. To be digitally signed by Chartered accountant or cost accountant or company secretary (in whole-time practice) Modify Check Form Prescrutiny Submit For office use only Digital signature of the authorising officer This e-Form is hereby approved This e-Form is hereby rejected Submit to BO [F. No. 1/6/2005-CL-V] JITESH KHOSLA, Jt. Secy. Note:- The Principal rules were published in the Gazette of India vide G.S.R. No. 427(E) dated 24-07-1975.