Amara and Miriam are the directors of Seaway Ltd. The balance on the financial statements retained earnings at the year end 30 April 2019 showed a loss of 4,500.

For the year ended 30 April 2020, Seaway Ltd made a profit of 8,500. The revaluation reserves increased by 15,000 due to the land being revalued. There was an increase in the share premium account of 5,000.

At the year end 30 April 2020, Amara and Miriam, recommended with the agreement of the shareholders, a dividend payment of 6,000.

REQUIRED

Calculate the distributable profit of Seaway Ltd at the year end 30 April 2020.

What would be included in the profit available for distribution in a company's current financial year, when paying dividends?

Give TWO statements that are correct regarding unlawful dividends.