TaxTMI 
TaxTMI 
CAN DEVIDEND DECLARED OUT OF GENERAL RESERVE?
DECLARATION OF DEVIDEND
31 Jul 2012 
1 Reply 
1493 Views Asked by
Dividend declaration from general reserves permissible where companies comply with applicable declaration-out-of-reserves rules and conditions.
Dividends may be declared out of a company's general reserve provided the company complies with the Companies (Declaration out of reserves) Rules and the conditions those Rules prescribe regarding the source, authorisation, recording, and procedural requirements for utilising reserves for distribution. (AI Summary)
Dividends may be declared out of a company's general reserve provided the company complies with the Companies (Declaration out of reserves) Rules and the conditions those Rules prescribe regarding the source, authorisation, recording, and procedural requirements for utilising reserves for distribution. (AI Summary)
