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Dividend and Capital Reserve

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Professor
43 Points Joined June 2016
Can Capital Reserve realised in cash be used for paying dividend? In short is it considered as free reserve?
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On 03 October 2017 at 17:30 Report
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99 Points Joined August 2017
Yes sir u can use capital reserve realized in cash/bank can be used for diatributing dividend.
However nature of reserve must be confirmed beforehand.
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On 03 October 2017 at 18:12
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99 Points Joined August 2017
*distributing
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On 03 October 2017 at 18:13
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Professor
43 Points Joined June 2016
It means Profit prior to incorporation also can be used for dividend distribution as long as it is realised in cash?
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On 03 October 2017 at 22:15

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