Dividends ‑ Declaration of ‑ Transfer to reserves of certain percentage of profits

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..... #8209; 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 The Department has received a number of queries in respect of the above‑mentioned rules. The points raised have been duly considered and the Department s .....

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..... s mean profits after statutory transfer to the development rebate reserve. Query 4: Whether reference to dividend made in the rules is to both equity and preference dividend or to equity dividend alone? Answer: The reference is to equity dividend and also to that portion of dividend relating to participating preference shares over and above the fixed rate of preference dividend. Query 5 .....

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..... o declare dividend. Query 9: Whether these Rules make the provisions of section 5A of the Companies (Temporary Restrictions on Dividend) Act, 1974 mandatory in certain cases? Answer: Since there is no inconsistency with the provisions of the Companies (Temporary Restrictions on Dividend) Act, the provisions of these Rules will have to be complied with. Query 10: Whether after transfer .....

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