Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

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

user-image
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"

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.