• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Question from chp 14 capital maintenance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Question from chp 14 capital maintenance

  • This topic has 3 replies, 2 voices, and was last updated 11 months ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 2, 2022 at 6:17 pm #649673
    Safiya.12345
    Participant
    • Topics: 61
    • Replies: 111
    • ☆☆

    If a company makes an unlawful dividend, who may be involved in making good the distribution?

    A.The company only

    B.The directors only

    C.The shareholders only

    D .The company, the directors and the shareholders

    . If a company makes an unlawful dividend,it is the directors who declare the dividend so they will be liable and members if they were aware of it was unlawful and they accepted that dividend
    Ans is d
    Can u plz explain how everyone is liable

    March 3, 2022 at 7:10 am #649697
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22702
    • ☆☆☆☆☆

    So, really your question is ‘Why is the company joined in liability?’

    The directors merely ‘propose’ the dividend and the shareholders approve the proposal by passing the resolution at the general meeting

    But, in so passing, the shareholders are acting in their capacity as ‘the membership’ or ‘the company’. We often hear about ‘the company in general meeting did ….’ and the actions of the shareholders as a body are therefore the actions of the company

    OK?

    March 3, 2022 at 4:47 pm #649746
    Safiya.12345
    Participant
    • Topics: 61
    • Replies: 111
    • ☆☆

    Thank u sir

    March 3, 2022 at 7:59 pm #649765
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22702
    • ☆☆☆☆☆

    No worries – happy to help

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • cBarsoum on Audit Risk – ACCA Audit and Assurance (AA)
  • allistair.a@gmail.com on Digital strategy – CIMA E3
  • John Moffat on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures
  • Joanne94 on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures
  • cBarsoum on The Stages of an Audit – Appointment – ACCA Audit and Assurance (AA)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy