No dividend shall be declared or paid by a company for

Solution

‘Companies Act’  Section 123.Declaration of dividend: (1) No dividend shall be declared or paid by a company for any financial year except— (a) out of the profits of the company  for that year arrived at after providing for depreciation in accordance with the provisions of sub-section (2), or out of the profits of the company for any previous financial year  or years arrived at after providing for depreciation in accordance with the provisions of that sub-section and remaining undistributed, or out of both or; both.