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