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<p>a. Liability to pay dividends arise upon declaration by the Board of Directors.</p> <p>b. The company is liable to pay dividends each year if it has declared operating profits for the year.</p> <p>c. Dividend is payable each year, even if the company is operating at a loss.</p> <p>d. Dividends paid are deductible expense for tax purpose.</p>
A. Liability to pay dividends arises upon declaration of said dividends by the board of directors.
If I may add to this, in some countries, the board of directors is only allowed to propose dividends, but no dividend declaration is made until approval is received by the AGM.
. Liability to pay dividends arise upon declaration by the Board of Directors.
B
b. The company is liable to pay dividends each year if it has declared operating profits for the year.
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