Anish along with his six friends desires to incorporate a Section 8 Company under the Companies Act, 2013. He is seeking your advice in the following matters: (c) Whether the Section 8 Company can pay dividend to its mem
CS Executive · Setting up of Business Entities and Closure · PYQS · December 2021
Anish along with his six friends desires to incorporate a Section 8 Company under the Companies Act, 2013. He is seeking your advice in the following matters: (c) Whether the Section 8 Company can pay dividend to its members ?
Answer & Explanation:
No, according to Section 8(1)(c) of the Companies Act, 2013 Company cannot pay dividend to its members as it prohibits the payment of dividends to its members.
Topics: Company Law
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