Section 27: Restriction on payment of dividends

27. Restriction on payment of dividends (1) Notwithstanding the Companies Act 1984 and Companies Act 2001, no bank shall declare, credit or pay, or transfer abroad, any dividend or make any other transfer from profits until— (a) the central bank is satisfied that the payment of dividend or any other transfer from profits will not cause the bank to be in contravention of the capital adequacy requirements of section 20 or liquidity requirements of section 22, or likely to impair the future capital adequacy or liquidity of the bank; (b) any impairment in its amount paid as stated capital or assigned capital has been made good; and (c) adequate provision, to the satisfaction of the central bank, has been made in respect of impaired credits. (2) For the purposes of this section, an issue of bonus shares out of profits shall be deemed to be a payment of dividends. (3) Every bank shall make quarterly reports to the central bank on the matters specified in subsection (1) in such form and in such manner as may be approved by the central bank.