Section 36
Restrictions on payment of dividend
of Development Financial Institutions Act 2002
ActIn forceProvision 49 of 248
Section 36
(1)
A prescribed institution shall not pay any dividend on its shares until all its capitalised expenditure (including preliminary expenses, organization expenses, shares selling commission, brokerage, amount of losses incurred, and any other item of expenditure not represented by tangible assets) has been written off.
(2)
Before a prescribed institution declares any dividend, it shall apply in writing for the approval of the Bank in respect of the amount proposed to be declared, and the Bank may approve such amount, or a reduced amount, or prohibit payment of any dividend, having regard to the financial condition of the prescribed institution.
(3)
(Deleted by Act A1502).