Sino Grandness

[HitandRun]

Providing Link for Clarity

Distribution of dividends. 
Companies may return cash to their shareholders via an outright distribution of dividends and this can be implemented by way of board or shareholder resolutions, or both. However, a company can only declare and pay final dividends from distributable profits and not share capital. In determining whether the company has sufficient distributable profits, it can look at both its current year as well as past years’ profits. In terms of current year profits, a company is not required to apply its current year profits to offset any accumulated losses from past years and may distribute such profits as dividends. Any past years’ profit reserves may also be distributed, including reserves created from the revaluation of assets, provided that the revaluation is not subject to short-term fluctuations and has been verified by professional valuers independently.