Yes. To get technical for tax dividends need to be paid 'out of...

Yes. To get technical for tax dividends need to be paid 'out of profits' and the net asset reduction requires solvency guarantees from the new shareholder, albeit these are probably manageable in some way!

@natnicnak,

But that's not what @Arachne is saying in his/her post.
@Arachne is saying that a dividend can indeed be paid if there are no profits, current or retained, as long as the three criteria listed by in Arachne's post are met.

(Correct me if I'm misinterpreting here, @Arachne)