DIVIDEND

WHAT IS DIVIDEND?
A distribution of profits to shareholders
How?
Payment of cash or issue of shares (bonus shares)
Grant of share options or transfer of co assets
S.365(1) no dividend shall be payable to s/h of co
except out of profits or pursuant to s.60 (issue of
shares at a premium)
S.365(2) director or manager who wilfully pays or
permit to be paid dividend out of what he knows is not
profits (xcpt s.60) shall be guilty under the Act and
personally liable for the amount of the debt due by the
co to s/h
 WHEN DO YOU PAY DIVIDEND?
Declaration of dividend
A.98 (Table A) co may declare dividend in
general meeting, but must not exceed amount
recommended by directors.
BURLAND V EARLE (1902) AC 83
RE SQ WONG HOLDING (PTE) LTD [1987] 2 MLJ
298 directors have discretion to recommend
dividend or not
KANG CHONG YEOW; ex parte MIVAN FAR EAST
SDN BHD [2001] 3 MLJ 98 declare dividend
before it becomes debt by co to s/h
 DIRECTORS DEALING WITH PROFITS
BEFORE DECLARING DIVIDEND
A.98 A 105 (TABLE A)
A.101 (TABLE A)
A.104 (TABLE A)
 TYPES OF DIVIDEND
INTERIM DIVIDEND
FINAL DIVIDEND