Under the ABCA, if the articles of the corporation indicate that a class of shares is entitled to dividends but do not fix the amount of the dividend, the decision as to whether dividends will be paid and the amount of any such dividends is within the discretion of the corporation's board of directors. Such a situation concerns Serinus because the Company Articles do not fix any dividends for the Serinus shares and therefore dividend will be declared by a director resolution.
The Company Board of Directors has not declared any dividends since 2010. As the international oil and gas business is complex and dynamic, Serinus is unable to provide any greater guidance to shareholders with respect to if and when Serinus may pay a dividend.
All Serinus Shares are entitled to participate equally in dividends if, as and when declared by the Board of Directors.
Until a board of directors declares a dividend out of the profits of the corporation, such amount remains an integral part of the assets of the corporation.
An ABCA corporation is not permitted to declare or pay a dividend if there are reasonable grounds to believe that the corporation, after the payment has been effected, is or would be unable to pay its liabilities as they come due, or the realizable value of the corporation's assets would be less than the aggregate of its liabilities and stated capital of all classes of shares.
More information about dividends – see Company’s Prospectus 2014