CUET Preparation Today
| According to the provisions, a company has to provide for present and past depreciation on assets and create statutory reserves before declaring dividend. Which factor affecting dividend decision is reflected in the above line? |
Legal constraints
Taxation policy
Cash flow position
Contractual constraints |
| Legal constraints |
| Legal Constraints: Certain provisions of the Companies Act place restrictions on payouts as dividend. Such provisions must be adhered to while declaring the dividend. |
