Regulatory Alerts2021-11-05
Guideline on Payment of Dividend
The Bank of Mauritius issued this guideline to establish minimum prudential criteria and a formal affirmation process for deposit-taking institutions declaring or transferring dividends and profits. Institutions must satisfy capital adequacy and liquidity thresholds, maintain adequate reserve balances, distribute amounts from retained earnings, and submit board resolutions alongside external auditor reports confirming post-distribution solvency. The framework further mandates robust board oversight, caps interim profit distributions at fifty percent of interim profits, and requires full implementation within three months.
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