law

Which of the following statement is TRUE with regards to the payment of dividends in Designers Ltd if the Directors have declared such payments: a. Designer's Ltd will not be obligated to pay dividends, because the board of directors have a right to plough back the profit into the business b. Designer's Ltd will not be obligated to pay dividends declared, under the alter ego principle c. Designer's Ltd will be obligated to pay dividends, because once it has been declared it becomes a debt to the firm