Ministry of Corporate Affairs vide its notification dated 12-06-has amended the Rules relating to (DECLARATION AND PAYMENT OF DIVIDEND) thereby substituting the existing rules rule 3, for sub-rule (5) with the following :
No company shall declare dividend unless carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company of the current year.
Complete notification is reproduced here below:
(DECLARATION AND PAYMENT OF DIVIDEND) AMENDMENT RULES, 2014 - AMENDMENT IN RULE 3
NOTIFICATION NO. GSR 397(E) [F.NO.1/31/2013-CL-V], DATED 12-6-2014
In exercise of the powers conferred under sub-section (1) of section 123 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules to amend the Companies (Declaration and Payment of Dividend) Rules, 2014, namely:—
1. (1) These rules may be called the Companies (Declaration and Payment of Dividend) Amendment Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Declaration and Payment of Dividend) Rules, 2014, in rule 3, for sub-rule (5), the following sub-rule shall be substituted, namely:—
"(5) No company shall declare dividend unless carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company of the current year."
No company shall declare dividend unless carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company of the current year.
Complete notification is reproduced here below:
(DECLARATION AND PAYMENT OF DIVIDEND) AMENDMENT RULES, 2014 - AMENDMENT IN RULE 3
NOTIFICATION NO. GSR 397(E) [F.NO.1/31/2013-CL-V], DATED 12-6-2014
In exercise of the powers conferred under sub-section (1) of section 123 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules to amend the Companies (Declaration and Payment of Dividend) Rules, 2014, namely:—
1. (1) These rules may be called the Companies (Declaration and Payment of Dividend) Amendment Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Declaration and Payment of Dividend) Rules, 2014, in rule 3, for sub-rule (5), the following sub-rule shall be substituted, namely:—
"(5) No company shall declare dividend unless carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company of the current year."
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