distribution of profits

Others 471 views 3 replies

What are the various means by which profits can be distributed to foreign equity share holders apart from dividend?

Replies (3)

Dear Fatema,

1) Bonus Shares is the First & foremost thing (cash outflow is not involved on part of the company but shareholders can definately realize cash by selling their bonus shares& one more plus point CDT can be saved in this case)

2) U can issue Bonus Debentures etc, on which regular Interest can be paid to them.

If I get to know anyother means I will surely let u know

Amir,

Will you please explain how does allotment of bonus shares amount to distribution of profits?

Dear Fatema,

Bonus Shares will be issued by debiting ur reserves..& As I explained it will not involve any cash outflow on part of the company but shareholder's can definately realize cash by selling of their bonus shares in the market.


CCI Pro

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