Photo of Miloni Mau

Associate in the General Corporate Practice at the Mumbai office of Cyril Amarchand Mangaldas. Miloni can be reached at miloni.mau@cyrilshroff.com

Declaration of Dividend: Interplay of law and business dynamics

Context

The aim of any business organisation is to earn profit and distribute it among the owners. In case of a company, such distribution of profits is connoted as Dividend. The Companies Act, 2013 (“the Act”), inter alia provides for declaration of dividend out of profits. Profit here is the net profit of a company, as determined for preparing financial statements, as per the provisions of Section 129 of the Act and after complying with all the applicable accounting standards notified under Section 133 of the Act.Continue Reading Declaration of Dividend: Interplay of law and business dynamics