CourtMesh

Section 15: Restrictions as to payment of dividend.

The Banking Regulation Act, 1949Central Act · Act 10 of 1949

[(1)] No banking company shall pay any dividend on its shares until all its capitalised expenses (including preliminary expenses, organisation expenses, share-selling commission, brokerage, amounts of losses incurred and any other item of expenditure not represented by tangible assets) have been completely written off.

[(2) Notwithstanding anything to the contrary contained in sub- section (1) or in the Companies Act, 1956 (1 of 1956), a banking company may pay dividends on its shares without writing off--

(i) the depreciation, if any, in the value of its investments in approved securities in any case where such depreciation has not actually been capitalised or otherwise accounted for as a loss;

(ii) the depreciation, if any, in the value of its investments in shares, debentures or bonds (other than approved securities) in any case where adequate provision for such depreciation has been made to the satisfaction of the auditor of the banking company;

(iii) the bad debts, if any, in any case where adequate provision for such debts has been made to the satisfaction of the auditor of the banking company.]

Where this provision sits

ActThe Banking Regulation Act, 1949
Section15
Marginal noteRestrictions as to payment of dividend.
JurisdictionCentral
StatusIn force as published by the source

How this provision has been amended

Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.

  • renumbered. . S. 15 was re-numbered as sub-section (1) of that section by s. 10, ibid. (w.e.f. 1-10-1959).
  • inserted, Act 33 of 1959. . Ins. by Act 33 of 1959, s. 10 (w.e.f. 1-10-1959).

Find the provision, not just read it

The full text above is free, and it stays free. What a free CourtMesh account adds is everything you cannot do by reading one page at a time:

  • Search 49,000+ Central and State enactments by what a provision says, not by its number
  • Jump from any section to every judgment that has applied it
  • Search 300 million+ Indian court records alongside the statute
  • Ask a research agent to find and read the case law on a provision for you

Free account. No card. About a minute to create.

Create a free account

Need this as data, not as a page? The Banking Regulation Act, 1949 is one of 49,000+ enactments on CourtMesh. The Indian court cases API serves the case law that cites these provisions over JSON, with API documentation and plans and pricing. See also the judgment library.