Dividends

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Does anyone know whether a Company can pay dividends to its shareholders in a year in which it does not make any profits? Is it acceptable to pay dividends out of previous year's profits.<BR>If the Company has not made a profit since it began trading, can it still pay dividends?<BR>Thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Dividends

    Dividends can only be paid where the company has distributable reserves (ie this will be shown in the balance sheet). <BR><BR>AC<BR><BR>

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