Explain The Rules Governing The Distribution Of Dividends 2 / 2

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Question 5

In relation to the rules governing the payment of company dividends, explain:

(a) how dividends may be properly funded;

(b) the rules which apply to public limited companies;

(c) the consequences of any dividend being paid in breach of the rules.

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Question 5b

In relation to company law explain:

(b)

the circumstances under which both a private and a public limited company can reduce its capital, and the procedures through which this can be done.

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