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Explain the circumstances when a dividend may become payable and enforceable as a debt against the company.

      

Explain the circumstances when a dividend may become payable and enforceable as a debt against the company.

  

Answers


Martin
- Under Article 114 of Table A directors recommend dividend and members declare the same in general meeting.
- Under Article 115 directors may form time-to-time pay member such intern dividend as is justified by profits of the Company.
- Under article 116, no dividend shall be paid otherwise than out of profits.
- Dividend is payable after payment of debts and other liabilities incurred during the year dividend is only enforceable after its formal declaration.

marto answered the question on February 7, 2019 at 06:28


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