The issued share capital is 15,000,000 but the company bought own shares with a nominal value of 2,500,000 during the year for ISK 7,500,000. The difference between the nominal value and the premium price was entered through the premium value of the paid-in share capital, but a comment was made on that transaction. No statutory contribution has been made to the statutory reserve fund as required and the company's managing director wants this fixed. 

In recent years, ISK 40 million has been paid. kr. in dividends to shareholders each year. The company's board wants to know how much dividends can be paid out in 2021 according to the 2020 annual accounts and asks you to answer that question. A short memorandum must be written reviewing the main provisions of the law on dividends and the possible amount of dividends.