Dividend rule

Hi Garvit, You need to be familiar with the dividend rules which are as follows; In a Private company- a dividend can not be paid from Capital. It can only be paid from out of its distributable profit meaning the accumulated realised profit less the accumulated realised losses. In a Public company - a dividend can not be paid from Capital. It can only be paid from out of its distributable profit meaning accumulated realised profit less accumulated realised losses less accumulated unrealised losses. The above rules apply except in the context of the examples you referred to above. I hope this clarifies. Kind regards, Vijay

Yes exactly they can ignore the rules for the purpose of a bonus share for example :)