retained earning轉share capital

Very straight. Whether the amount is distributable to the shareholders or not .

Retained earnings could be distributed in cash at any time to the existing shareholders provided it is approved by the board of directors and shareholders' meeting.

However, if the retained earnings are used for capitalization of shares, the issued capital is increased and the retained earnings is reduced with the same amount. No dividend could then be given to the shareholders.

For example,
If the retained earnings is $100 and if $80 is going to be capitalised as share capital. then, Share capital account will be increased by $80 and a reduction of retained earnings is reduced by $80. A retained earning of $20 will remained and it could be distributed as dividend to all shareholders in future.

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