Question
For the past three years of its commercial operation, Petronius Inc., a listed oil company , has been earning tremendously.It has surplus profits of P900
For the past three years of its commercial operation, Petronius Inc., a listed oil company , has been earning tremendously.It has surplus profits of P900 million as against its paid-in capital of P100 million.Many stockholders have been claiming that they should share in the profits of Petronius Inc. by way of dividends but the Board of Directors countered that there is no need to declare dividends since the value of Petronius shares in the Philippine Stock Exchange has doubled.May the complaining stockholders compel Petronius Inc. to declare dividends?Explain.
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