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HomeCA InterlawDeclaration and Payment of Dividend › A company that has incurred a loss may declare d…

A company that has incurred a loss may declare dividend out of its:

Aaccumulated (free) reserves, subject to prescribed conditions
Bunpaid call money
Csecurities premium
Dshare capital
Answer & Solution
Correct answer: A. accumulated (free) reserves, subject to prescribed conditions
A loss-making company may use accumulated free reserves, subject to conditions.
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