07-25-2009, 03:07 AM
Bilal,
No dividend can be paid in the case where all of the accumulated profits have been eroded by current year's huge loss.
I know what logical point you want to make out of it. Some 8 years back my mind was also struck by same issues.
I can simply say that for followers, a law (or precedent accepted by law) is something that will govern the practice. Revision of law or challenging to a precedent can be made but a differnt route is required to be adopted for it which if adopted will not give any absolute assurance that what you feel logical will takeover the law or existing precedent.
Anyway, this is entirely another debate. Iftikhar Ch. is there and we can put forth petitions where we feel justified and warranted. (Don't take a serious note of this line).
So conclusion is that in this third situation dividend cannot be paid.
Regards,
Kamran.
No dividend can be paid in the case where all of the accumulated profits have been eroded by current year's huge loss.
I know what logical point you want to make out of it. Some 8 years back my mind was also struck by same issues.
I can simply say that for followers, a law (or precedent accepted by law) is something that will govern the practice. Revision of law or challenging to a precedent can be made but a differnt route is required to be adopted for it which if adopted will not give any absolute assurance that what you feel logical will takeover the law or existing precedent.
Anyway, this is entirely another debate. Iftikhar Ch. is there and we can put forth petitions where we feel justified and warranted. (Don't take a serious note of this line).
So conclusion is that in this third situation dividend cannot be paid.
Regards,
Kamran.
