Rule  3(5) of The Companies (Declaration and Payment of Dividend) Rules, 2014 related to declaration of dividend out of reserves provides that no company shall declare dividend unless carried over previous losses and depreciation not provided in previous year are set off against profit of the company of the current year the loss or depreciation, whichever is less, in previous years is set off against the profit of the company for the year for which dividend is declared or paid.

MCA has amended the above Rules by deleting the Rule 3(5) by notification as under:

Government of India
Ministry of Corporate Affairs

Notification

New Delhi, the 29th May, 2015

G.S.R. _ (E). - In exercise of the powers conferred under sub­ section (1) of section 123 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Declaration and Payment of Dividend) Rules, 2014, namely:

1. (1) These rules may be called the Companies (Declaration and Payment of Dividend) Second Amendment Rules, 2015

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Declaration and Payment of Dividend) Rules, 2014, in rule 3, sub-rule (5) shall be omitted

[F. No. 1/31/2013-CL-V-Part]

AMARDEEP  SINGH  BHATIA

Joint Secretary to the Government of India