You are entitled to receive the annual financial statements of the company. This money is known as “ retained earnings”. Usually, the directors will decide to keep some of the profits in the company to plough back for future growth. Dividends can only be paid if the company passes a “ liquidity and solvency test" in terms of the Companies Act (71 of 2008). They can also pay a special dividend if they feel that there is enough cash. At year-end and after six months of the financial year, the directors look at the profits made by the company and decide how much to pay out as a dividend.
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