Banking and Financial Institutions Act 1989 · s 58

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s 58

(1)

A licensed local institution shall not pay any dividend on its shares until all its capitalised expenditure (including preliminary expenses, organisation expenses, shares selling commission, brokerage, amount of losses incurred, and any other item of expenditure not represented by tangible assets) has been completely written off.

(2)

Before a licensed local institution declares any dividend, it shall apply in writing for the approval of the Bank in respect of the amount proposed to be declared, and the Bank may approve the same, or a reduced amount, or prohibit payment of any dividend, having regard to the financial condition of the institution.