Explain the circumstances when a dividend may become payable and enforceable as a debt against the company.

Under Article 114 of Table A directors recommend dividend and members declare the same in general meeting.
• Under Article 115 directors may form time-to-time pay member such intern dividend as is justified profits of the Company.
• Under article 116, no dividend shall be paid otherwise than out of profits.
• Dividend is payable after payment of debts and other liabilities incurred during the year dividend is only enforceable after its formal declaration.

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