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TMI BlogDividend to be paid only out of profits.X X X X Extracts X X X X X X X X Extracts X X X X ..... nment for the payment of dividend in pursuance of a guarantee given by that Government: Provided that __ (a) if the company has not provided for depreciation for any previous financial year or years which falls or fall after the commencement of the Companies (Amendment) Act, 1960 (65 of 1960) it shall, before declaring or paying dividend for any financial year provide for such depreciation out of the profits of that financial year or out of the profits of any other previous financial year or years; (b) if the company has incurred any loss in any previous financial year or years, which falls or fall after the commencement of the Companies (Amendment) Act, 1960 (65 of 1960) then, the amount of the loss or an amount whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 205C, 206, 206A and 207 shall, as far as may be, also apply to any interim dividend.] (2) For the purpose of sub-section (1), depreciation shall be provided either ___ (a) to the extent specified in section 350; or (b) in respect of each item of depreciable asset, for such an amount as is arrived at by dividing ninety-five per cent of the original cost thereof to the company by the specified period in respect of such asset; or (c) on any other basis approved by the Central Government which has the effect of writing off by way of depreciation ninety-five per cent of the original cost to the company of each such depreciable asset on the expiry of the specified period; or (d) as re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich fails to comply with the provisions of section 80A shall not, so long as such failure continues, declare any dividend on its equity shares.] (3) No dividend shall be payable except in cash: Provided that nothing in this sub-section shall be deemed to prohibit the capitalization of profits or reserves of a company for the purpose of issuing fully paid-up bonus shares or paying up any amount, for the time being unpaid, on any shares held by the members of the company. (4) Nothing in this section shall be deemed to affect in any manner the operation of section 208. (5) For the purposes of this section ___ (a) "specified period" in respect of any depreciable asset shall mean the number of years at the end of which at lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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