Question: AB Limited is a public company having its registered office in Coimbatore. The company has incurred a net loss of 20 lakhs in the Financial

AB Limited is a public company having its registered office in Coimbatore. The company has incurred a net loss of 20 lakhs in the Financial Year (FY) 2019-20. The Board of Directors (BOD) wants to declare dividends for the FY 2019-20. The balances of the company as per the latest audited financial statements are as follows: 1. Equity Share Capital (` 10 each) - 100 lakhs 2. General Reserve - 150 lakhs 3. Debenture redemption Reserve - 50 lakhs The company has not declared any dividend in the preceding three financial years. Decide whether AB Limited is allowed to declare dividends or not for the FY 2019-20 by explaining the relevant provisions of the Companies Act in this regard. If allowed to declare dividends then state the maximum amount of dividend that can be paid by AB Limited as per Section 123 of the Companies Act 2013.

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