Equity-Dividends

Equity financing,involves raising capital through the issuance of shares in exchange for ownership interest in the company. Shareholders are entitled to participate in the profits of the company and may exercise voting rights depending on the class of shares held.

Equity contributions may be reflected in paid-up share capital and share premium accounts, and are governed by the company’s Articles of Association and relevant shareholder agreements.

"dividend" means any distribution (whether in cash or property, and whether made before or during a winding up) by a company to its shareholders with respect to their equity interest in the company.

  Section 7 of the ITA provides an expanded definition of dividends to include:

1.  any cash or asset is distributed or transferred by that company to or for the benefit of that shareholder or any person related to that shareholder;
2.  the shareholder or any person related to that shareholder is discharged from any obligation measurable in money which is owed to that company by that shareholder or...

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