Dividend declaration from reserves: permitted only under specified rate, draw and reserve floor conditions with loss set off. Rule 3 allows dividend declaration from free reserves when annual profits are inadequate, subject to conditions: the dividend rate must not exceed the average rate declared in the three preceding years (with an exception where no dividends were declared in those years); total draw from accumulated profits is capped at one tenth of paid up share capital plus free reserves per the latest audited accounts; withdrawals must first offset current year losses; and post withdrawal reserves must not fall below fifteen per cent of paid up share capital.