Corporate Laws

Overview of Prevention of Money Laundering Act, 2002

Prevention of Money Laundering Act, 2002 is also commonly known as PMLA 2002. This Act applies to the whole of India and it came into force with effect from 1st July 2005. It’s silent features are – It aims at combating chanellising of money into illegal activities, Provides for attachment and seizure of property and records Has stringent punishment, including rigorous imprisonment of up to 10 years and fine This Act is in line with the commitment made by India to fighting all forms of economic crimes. It has ten chapters and seventy-five sections. Brief History of this Legislation On
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Declaration and Payment of Dividends

Literal meaning of ‘’ means shareholders’ share of profits payable from the profits of the company. However, there can be two types of dividend, one that is paid in relation to going concern based activities i.e. normal business activities and the other one at the time of liquidation of the company in relation to shareholders’ share in the company. Declaration of Dividend Section of the Companies Act, 2013 deals with declaration of dividends. Accordingly, II. Transfer to Reserves – In absence of any rules regarding criteria to transfer reserves, a company can transfer any percentage of its profits for that
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