Payment of interim dividend by pvt ltd co.

RAJNISH BHUTANI (Querist) 03 January 2014 This query is : Resolved
If a pvt. ltd. company expects to make a loss in the current financial year, does the company law 1956 permit such a company to declare and pay an interim dividend in the current year which has to be paid out of the opening balance in profit and loss surplus, brought forward from previous years ?

Can the full amount of the brought forward balance in P & L surplus, be distributed as
a single interim dividend in the current year by such a company even it expects to make a loss in the current financial year ?

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