Discuss the conditions under which dividends can't be de

Question

Discuss the conditions under which dividends can't be declared.

18 Mar 2025

Answer :

Word Count : 284

Dividends are payments made by a company to its shareholders out of its profits. However, there are specific conditions under which dividends cannot be declared.

Firstly, inadequate or insufficient profits prevent the declaration of dividends. According to financial regulations, dividends can only be declared from current year profits or accumulated reserves. If the company incurs losses ______ _________ _______ ___ _______ ______ ____ __________ _______ ___.
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