Companies Act - No Dividend if previous Losses not set off

By Vijay Kumar

GOVERNMENT has amended the Companies (Declaration and Payment of Dividend) Rules 2014 to substitute Rule 3(5) to the effect:

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.

Ministry of Corporate Affairs Notification, Dated: June 12, 2014