Payment of dividend

    Posted By : damini / Published on : 10-Oct-2019 07:04 AM / View : 231 / Comment : 0
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    Dear Friends

    A state government company has made allotment of equity shares to existing shareholders under section 62(1)(a). But allotment was made after 60 days of receipt of application money.

    Now auditors are saying that the company has violated provisions of Section 73 and 74 and as per section 123(6) it cannot pay to dividend.

    The company has already declared and paid dividend.

    As per my view period of allotment to be made within 60 days is for private placement under section 42. Here allotment made under section 62(1)(c).

    What can be provisions in this regard.

    Please advise
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