Tuesday, August 9, 2011
How to deal with a delisted Ltd Co which pays hi salaries & Royalty but no dividend to indian shareholders?
This is a Indian subsidiary of a well known Auto Part producer. Its shares traded on Indian Stock exchanges were bought back/ acquired as a prelude to delisting. It gives very high salaries and still higher salary hikes, a fairly high level of loyalty to its parent foreign company, but no dividend has been declared so far in order to "Conserve Profits". The dividend payable to the parent co is apparently covered in the Royalty and by not declaring dividend it avoids Dividend Tax payable to the Central Govt.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment