governed by the provisions, immediately preceding the financial, Contras elation

(a) distribution sufficient for the maintenance of di:ide3 is to shareholders at a rats equal to the average of the rates at which dint icy is declared by it over the three years immediately preceding the
(2) Where he dividend is declared, the amount proposed to be transferred to its reserves from the current profits shall be lotver than the average amount of the dividends to shareholders declared by it over Lhuec years immediately preceding the financial year.
INCORPORATION OF A COMPANY I ZG3
incorporated company which case no dividends uotild have been declared over the three years immediately preceding the financial year Soch a company would, Illcrefore. be governed by the provisions contained in Rule I (green above). in other words, such a company is prohibited f otn transferring more than 10 per cent of its profit. to its reserves
Penalty. If a fails to cmnply with any of the provisions contained in these Rnles tl; e company and every of ficer of the company in default shall be punishable with tine which man extend to Rs 500, and where the Contras elation is a co m ma iPg one r ith a farther fine which may extend to Rs 50 for celery dad- tier the first during which such contravention continues
THE COMPANiES ,DECLARA51ON OF DIVIDEND OUT OF RESERVES

UNPAID OR UNCLAIMED DIVIDENDS
: With a view to lacticeof declaring dividends Without adequate liquid resources anti also tG cLeckmg the nususe of the
INCORPORATION OF A COMPANY 205
clnints of the shareholders. These rules which are caged The Companies Unpaid Dividend (Transfer to Ceneral Reveuue Account of the Central Go ermne) Rules, 1978" been discussed under the next heading
1. Tt.tnsfer uf moneys to the General Ret ens e Accotmt of the Central Government. Any money required to be transferred to the General of the Central Governunen t under Section 205 A(5) [See deta ils under the preceding heading] shall be transferred to any of the bunches of the Ptmiab National Bank specie ed for Uus purpose m the Rules, within a period of fourteen days from the date ml which such money is required to be so transferred under that sub-sectiml, which shall be aecoimted under the Major Minor Head of Accmmt''OG8- Miscellaneo General Services - Unpaid Dividends of Companies."
2. Statement to Registrar