Why are dividends issued on the paid up equity and not on the total equity of the company?

Veek M (0 Points)

20 October 2022  

Why are dividends issued on the paid up equity share capital of the Company https://i.imgur.com/0yyIBKD.png and not on the total equity of the company https://i.imgur.com/yQmz3IF.png ? Basically the equity is what shareholders own (Assets - Liabilities).