Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kencana Bhd, is a successful Malaysian company running a number of different businesses. During its previous operating year, it has generated significant profits including profit

image text in transcribed
Kencana Bhd, is a successful Malaysian company running a number of different businesses. During its previous operating year, it has generated significant profits including profit made from the sale of one of Its assets. Kencana Bhd's subsidiary, Nilam Sd Bhd, has also made a trading profit of RM6 million. Kencana Bhd intends to declare Its dividends based on the profits that it derived from the sale of properties and the profits made by its subsidiary. aj Advise Kencana Bhd whether the Companies Act 2016 allows such dividends to be paid. (6 marks) b) Explain to Kencane Bhd the consequences that the company and its director have to face If the company made the dividend distribution not out of profit. (4 marks) (Total: 10 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Criminal Law Cases And Materials

Authors: Joshua Dressler, Stephen Garvey

9th Edition

1647087708, 978-1647087708

More Books

Students also viewed these Law questions