Distributable profits (or distributable reserves) are the profits of a company that are legally available for distribution as dividends to its shareholders. This includes a company's accumulated realized profits after deducting all realized losses.
A payment made out of capital when a company is redeeming or purchasing its own shares after using all available distributable profits and the proceeds of any new issue of shares.
Profits available for distribution refer to the earnings or surplus that a company can allocate to its shareholders in the form of dividends or other forms of payouts.
Redeemable shares are equity or preference shares in a company that the issuing entity has the right to buy back, under predetermined terms specified at the time of issue.
