| Commentary

185 Accounting requirements

| Commentary

185 Accounting requirements

In deciding whether the company can declare a dividend without contravening the statutory rules, the company’s evaluation must be based on the following items as stated in the company’s relevant accounts1:

  1. 185.1

        profits, losses, assets and liabilities;

  2. 185.2

        where the relevant accounts are Companies Act accounts, provisions2 of a kind specified by regulations; and

  3. 185.3

        share capital and reserves (including undistributable reserves).

The relevant accounts will be the last annual accounts, except where the Act provides that the distribution may be justified by reference to interim or initial accounts3.

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