Section 427 CAMA 2020

Section 427 Companies and Allied Matters Act is about Distributable profits. It is under Chapter 16 (Annual returns) of the Act.

(1) A company may pay dividends only out of profits available for the purpose.

(2) The profits of a company available for payment of dividends are its accumulated, realised profits (so far as not previously utilised by distribution or capitalisation), less – its accumulated, realised losses (so far as not previously written off in a lawfully made reduction or reorganisation of capital).