set off dues against dividend

[Shailesh Goyal]

Hi all

Pls advise me on the below matter:

Can a Pvt. Ltd. company set off its dues from its shareholders against
dividend to be paid to them?

kindly suggest. its URGENT.

Regards

[ajay kumar]

No. the dividend if declared becomes the liability of the company to pay. If you adjust the same then the person concern can calim that he could not get the dividend with SEBI ROC or BSE. on the other hand you can not secure any kind of the supporting that you have paid the dividend because the dividend account specially opened can be cleared only through dividend warrants.

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[CS.SUNIL KUMAR B.G.]

Dears,

I think. yes you can setoff dividend amount only if company gets a letter from the concerned shareholder for doing setoff.

Additional views are welcome...

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CS.Sunil Kumar B.G.
B.B.M.,A.C.S.,(L.L.B.)
Mysore

Visit My Blog: http://works.bepress.com/cs_sunil_kumar/

[Nithya Jayakumar]

Dear Shailesh & Ajay

 

A Company can set off its dues against dividend payable.  Section 36(2) of Companies Act, 1956 reads thus:

 

All money payable by any member to the company under the memorandum or articles shall be a debt due from him to the company.

 

Hence the company, be it private or public can set off its dues against dividend or interest payable.

 

To quote, ours is a listed public company.  We had calls in arrears which we set off against the dividend declared for the FY 2008-09.

 

Regards

J. Nithya

On Thu, Nov 19, 2009 at 2:14 PM, ajay kumar <nitt...@gmail.com> wrote:

[Jayashree Chandrasekaran]

MY opinion is only unpaid amount due on shares can be set off against dividend

Jayashree

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[ajay kumar]

Yes dear you are right but ........

 

Sahareholder itna sarif hota to aisa hota hi kyo. ok

On Thu, Nov 19, 2009 at 2:18 PM, CS.SUNIL KUMAR B.G. <smiles...@gmail.com> wrote:

[shailesh goyal]

what if dues are in the shape of loans & advances.??

 

Regards