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A company is running a loss in the current year, can the company declare dividend?how?

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Question added by mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice
Date Posted: 2013/12/05
Khalid Noor
by Khalid Noor , Accounting Manager , FedEx

From the retained earning or reserves, the Company can issue Dividend depsite it faces operational losses.

shaheryar malik
by shaheryar malik , General Accountant , Valtorque Valves Trading LLC

Dividends must be declared from the "PROFITS" as per Security & Exchange Commision Regulations if the company is a limited liability listed company.

In case of simple partnership business , partners can draw out of company resources and it should be considered as "Drawings" rather than "Dividend Declaration"

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