Dividends - alteration of capital, Business Law and Ethics

Assignment Help:

DIVIDENDS:

As a commercial term, the word "dividends" has a variable meaning which depends on the context in which it is used. For purposes of company law, it denotes the payments which a company makes out of its profits to the shareholders in the company.

BASIC RULE

The basic rule is that "dividends must not be paid out of capital": Verner v General & Commercial Investment Trust (per Lindley, J). For purposes of this rule "Capital" means the money subscribed pursuant to the memorandum of association, or what represents that money: Verner v General & Commercial Investment Trust.


Related Discussions:- Dividends - alteration of capital

Registration of prospectus, Registration of Prospectus:  S.43 (1) prov...

Registration of Prospectus:  S.43 (1) provides that no prospectus shall be issued by or on behalf of a company unless, on or before the date of its publication, there has been

State article 22 of air and outer space law, State Article 22 of air and ou...

State Article 22 of air and outer space law Article  22  states  that  all  the  States  should  prevent  unnecessary  delays  to  aircraft,  crews, passengers and  cargo,  esp

Court-martial, Court-Martial Establishment Moreover Section 65 ...

Court-Martial Establishment Moreover Section 65 (1) of the Constitution empowers Parliament to establish court martial that shall have such jurisdiction and powers as m

The restrictions imposed on locally incorporated banks, QUESTION (a) Th...

QUESTION (a) The new Guideline on Corporate Governance relates to the processes and structures that should be put in place in order to direct and manage the business and affair

Rules for purchase of own shares, Rules for Purchase of own shares: So...

Rules for Purchase of own shares: So now next despite the rule in Trevor V Whitworth a company may purchase or acquire its own shares in the following cases: a) Where it ac

Interpretation of constitution - high court, Interpretation of Constitution...

Interpretation of Constitution - High Court After then under Section 67(1) of the Constitution gives that whether any question as to the interpretation of the constitution ari

Terms used in contract, Terms used in Contract However there are certa...

Terms used in Contract However there are certain terms may identify conditions and warranties like are implied into every contract covered through the Sale of Goods Act where

Personal rights invaded - statutory provisions, Personal rights invaded: ...

Personal rights invaded:                    A shareholder may sue to protect from invasion their own individual rights as members.  This is illustrated by Pender v Lushington

Rule in foss v harbottle, RULE IN FOSS v HARBOTTLE:  What has come to ...

RULE IN FOSS v HARBOTTLE:  What has come to be recognized in company law as "the rule in Foss v Harbottle" is the decision of Vice-Chancellor Wigram in the case of Foss v Harb

When was international atomic energy agency established, Explain Internatio...

Explain International Atomic Energy Agency The  NPT  also  creates  rights and  obligations on  the  members of  NPT  to  comply  with  the provisions of the treaty and to ensu

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd