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CHAPTER 14
DIVIDENDS

A DIVIDEND is the share of that portion of the company's assets divided among the members which is received by a shareholder. Commercial companies are formed with the object of earning profits. for the shareholders and out of the profits so earned dividends are usually paid. No express power to pay dividends is required in the memorandum or the articles, but the articles set out the way in which dividends are to be declared and the fund from which they are payable. Dividends must be carefully distinguished from interest. Interest is a debt which, like all debts, is, payable out of the company's assets generally. A dividend, however, is only a debt after it has been declared by the company, and dividends cannot be declared out of the assets generally; they can only be declared out of the assets legally available for dividend.
It is a fundamental principle of company law that the issued capital must not be paid to the shareholders, except by leave of the Court. The capital must be preserved intact and only spent upon the objects defined in the memorandum. Any other expenditure is, ultra vires and reduces the fund available for the company's creditors in satisfaction of their claims.
Re Walters' Deed of Guarantee, [1933] Ch. 321. W. guaranteed the preference dividends for three years and the company agreed to repay to W. on demand any sums paid by him under the guarantee. Held, the company's agreement was ultra virea and void, as it might involve paying W. out of capital.

As long as dividends are not paid out of the issued capital, they may legally be paid out of any of the company's assets, subject to the provisions of the articles. " But what are profits and what is capital may be a difficult and sometimes an almost impossible problem to solve."(1)
For the purposes of dividends, capital account and revenue account must be kept distinct. When expenses are incurred, whether they should be charged to capital account or revenue account depends on

1 Per Lord Halsbury, in Dovey v. Cory, [1901] A. C. at p. 487.

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where is HTML where is HEAD where is TITLE A DIVIDEND is what is share of that portion of what is company's assets divided among what is members which is received by a shareholder. Commercial companies are formed with what is object of earning profits. for what is shareholders and out of what is profits so earned dividends are usually paid. No express power to pay dividends is required in what is memorandum or what is articles, but what is articles set out what is way in which dividends are to be declared and what is fund from which they are payable. Dividends must be carefully distinguished from interest. Interest is a debt which, like all debts, is, payable out of what is company's assets generally. A dividend, however, is only a debt after it has been declared by what is company, and dividends cannot be declared out of what is assets generally; they can only be declared out of what is assets legally available for dividend. It is a fundamental principle of company law that what is issued capital must not be paid to what is shareholders, except by leave of what is Court. what is capital must be preserved intact and only spent upon what is objects defined in what is memorandum. Any other expenditure is, ultra vires and reduces what is fund available for what is company's creditors in satisfaction of their claims. Re Walters' Deed of Guarantee, [1933] Ch. 321. W. guaranteed what is preference dividends for three years and what is company agreed to repay to W. on demand any sums paid by him under what is guarantee. Held, what is company's agreement was ultra virea and void, as it might involve paying W. out of capital. As long as dividends are not paid out of what is issued capital, they may legally be paid out of any of what is company's assets, subject to what is provisions of what is articles. " But what are profits and what is capital may be a difficult and sometimes an almost impossible problem to solve."(1) For what is purposes of dividends, capital account and revenue account must be kept distinct. When expenses are incurred, whether they should be charged to capital account or revenue account depends on 1 Per Lord Halsbury, in Dovey v. Cory, [1901] A. C. at p. 487. where is meta name="keywords" content="old books, Free book , free book offer , free audio books , free coloring book pages , free book reports , free audio book , audio books free download , book free , free guest book , books free , free book summaries , download free audio books , free childrens books." where is where are they now rel="stylesheet" type="text/css" href="../../style.css" where is meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" where is BODY bgColor=#ffffff text="#000000" where are they now ="#000000" v where are they now ="#FF0000" where is div align="center" where is strong where is strong where is a href="http://www.aaoldbooks.com" Books > where is a href="../default.asp" title="Book" Old Books > where is strong where is a href="default.asp" Poetry Northwest (1959) where is table width="700" border="1" align="center" cellpadding="15" cellspacing="0" where is center where is tr where is td width="160" align="center" valign="top" where is div align="center" where is td align="center" valign="top" where is div align="left" where is div align="center" where is p align="left" Page 154 where is strong CHAPTER 14 DIVIDENDS where is p align="justify" A DIVIDEND is what is share of that portion of the company's assets divided among what is members which is received by a shareholder. Commercial companies are formed with what is object of earning profits. for what is shareholders and out of what is profits so earned dividends are usually paid. No express power to pay dividends is required in what is memorandum or what is articles, but what is articles set out what is way in which dividends are to be declared and what is fund from which they are payable. Dividends must be carefully distinguished from interest. Interest is a debt which, like all debts, is, payable out of what is company's assets generally. A dividend, however, is only a debt after it has been declared by what is company, and dividends cannot be declared out of what is assets generally; they can only be declared out of what is assets legally available for dividend. It is a fundamental principle of company law that what is issued capital must not be paid to what is shareholders, except by leave of what is Court. what is capital must be preserved intact and only spent upon what is objects defined in what is memorandum. Any other expenditure is, ultra vires and reduces what is fund available for what is company's creditors in satisfaction of their claims. Re Walters' Deed of Guarantee, [1933] Ch. 321. W. guaranteed the preference dividends for three years and what is company agreed to repay to W. on demand any sums paid by him under what is guarantee. Held, what is company's agreement was ultra virea and void, as it might involve paying W. out of capital. As long as dividends are not paid out of what is issued capital, they may legally be paid out of any of what is company's assets, subject to what is provisions of what is articles. " But what are profits and what is capital may be a difficult and sometimes an almost impossible problem to solve."(1) For what is purposes of dividends, capital account and revenue account must be kept distinct. When expenses are incurred, whether they should be charged to capital account or revenue account depends on 1 Per Lord Halsbury, in Dovey v. Cory, [1901] A. C. at p. 487. where is Server.Execute("_SiteMap.asp") %

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