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CHAPTER 14
DIVIDENDS

are not the gross amount obtained from the sale but only the sum produced by taking the gross amount and deducting the expenses of sale, including the money spent in buying the goods for sale. The result so obtained is exactly the same as if the money spent in buying the goods is regarded as circulating capital which has to be replaced before the true profit can be ascertained.(12)
5. The articles frequently restrict the fund from which dividends can be paid. Table A, Art. 116, provides that no dividend shall be paid otherwise than out of profits. This does not prevent dividends from being paid from an appreciation of the capital assets of the company, because such an appreciation is a profit. If, however, the articles provide that dividends shall only be paid out of the profits of the business of the company, an appreciation of capital assets cannot be divided as dividend.

Payment of interest out of capital (s. 65).-When the shares of a company are issued for the purpose of raising money to defray the expenses of the construction of any works or buildings or the provision of any plant which cannot be made profitable for
a lengthened period, interest on the share capital so issued may be paid out of capital, provided that:
1. The payment is authorised by the articles or by special resolution.
2. The sanction of the Board of Trade is obtained.
3. Payment is only made for such period as the Board of Trade determines.
4. The rate of interest does not exceed 4 per cent.

Effect of Paying Dividends out of Capital.-All directors who are knowingly parties to the payment of dividends out of capital are jointly and severally liable to replace the amount of dividends so paid, with interest. (13) In such a case they are entitled to be indemnified by each shareholder who received dividends, knowing them to be paid out of capital, to the extent of the dividends received. (14) A shareholder who has knowingly received a dividend paid out of capital cannot, on behalf of the company, maintain an action against the directors to replace the dividends so paid, at any rate until he has repaid the money he has received. (15)

12 For further information on this difficult subject the student is referred to Buckley's Companies Acts (11th ed.), pp. 756-763, and Stiebel's Company Law (3rd ed.), pp. 71-79.
13 Plitcroft's Case (1382), 21 Ch. D. 519.
14 Moxham v. Grant, [1900] 1 Q. B. 88.
15 Towers v. African Tug Co., [1904] 1 Ch. 558.

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where is HTML where is HEAD where is TITLE are not what is gross amount obtained from what is sale but only what is sum produced by taking what is gross amount and deducting what is expenses of sale, including what is money spent in buying what is goods for sale. what is result so obtained is exactly what is same as if what is money spent in buying what is goods is regarded as circulating capital which has to be replaced before what is true profit can be ascertained.(12) 5. what is articles frequently restrict what is fund from which dividends can be paid. Table A, Art. 116, provides that no dividend shall be paid otherwise than out of profits. This does not prevent dividends from being paid from an appreciation of what is capital assets of what is company, because such an appreciation is a profit. If, however, what is articles provide that dividends shall only be paid out of what is profits of what is business of what is company, an appreciation of capital assets cannot be divided as dividend. Payment of interest out of capital (s. 65).-When what is shares of a company are issued for what is purpose of raising money to defray what is expenses of what is construction of any works or buildings or what is provision of any plant which cannot be made profitable for a lengthened period, interest on what is share capital so issued may be paid out of capital, provided that: 1. what is payment is authorised by what is articles or by special resolution. 2. what is sanction of what is Board of Trade is obtained. 3. Payment is only made for such period as what is Board of Trade determines. 4. what is rate of interest does not exceed 4 per cent. Effect of Paying Dividends out of Capital.-All directors who are knowingly parties to what is payment of dividends out of capital are jointly and severally liable to replace what is amount of dividends so paid, with interest. (13) In such a case they are entitled to be indemnified by each shareholder who received dividends, knowing them to be paid out of capital, to what is extent of what is dividends received. (14) A shareholder who has knowingly received a dividend paid out of capital cannot, on behalf of what is company, maintain an action against what is directors to replace what is dividends so paid, at any rate until he has repaid what is money he has received. (15) 12 For further information on this difficult subject what is student is referred to Buckley's Companies Acts (11th ed.), pp. 756-763, and Stiebel's Company Law (3rd ed.), pp. 71-79. 13 Plitcroft's Case (1382), 21 Ch. D. 519. 14 Moxham v. Grant, [1900] 1 Q. B. 88. 15 Towers v. African Tug Co., [1904] 1 Ch. 558. 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 158 where is strong CHAPTER 14 DIVIDENDS where is p align="justify" are not what is gross amount obtained from what is sale but only what is sum produced by taking what is gross amount and deducting what is expenses of sale, including what is money spent in buying what is goods for sale. what is result so obtained is exactly what is same as if the money spent in buying what is goods is regarded as circulating capital which has to be replaced before what is true profit can be ascertained.(12) 5. what is articles frequently restrict what is fund from which dividends can be paid. Table A, Art. 116, provides that no dividend shall be paid otherwise than out of profits. This does not prevent dividends from being paid from an appreciation of what is capital assets of the company, because such an appreciation is a profit. If, however, what is articles provide that dividends shall only be paid out of the profits of what is business of what is company, an appreciation of capital assets cannot be divided as dividend. Payment of interest out of capital (s. 65).-When what is shares of a company are issued for the purpose of raising money to defray what is expenses of what is construction of any works or buildings or the provision of any plant which cannot be made profitable for a lengthened period, interest on what is share capital so issued may be paid out of capital, provided that: 1. what is payment is authorised by what is articles or by special resolution. 2. what is sanction of what is Board of Trade is obtained. 3. Payment is only made for such period as what is Board of Trade determines. 4. what is rate of interest does not exceed 4 per cent. Effect of Paying Dividends out of Capital.-All directors who are knowingly parties to what is payment of dividends out of capital are jointly and severally liable to replace what is amount of dividends so paid, with interest. (13) In such a case they are entitled to be indemnified by each shareholder who received dividends, knowing them to be paid out of capital, to what is extent of what is dividends received. (14) A shareholder who has knowingly received a dividend paid out of capital cannot, on behalf of what is company, maintain an action against what is directors to replace what is dividends so paid, at any rate until he has repaid what is money he has received. (15) 12 For further information on this difficult subject what is student is referred to Buckley's Companies Acts (11th ed.), pp. 756-763, and Stiebel's Company Law (3rd ed.), pp. 71-79. 13 Plitcroft's Case (1382), 21 Ch. D. 519. 14 Moxham v. Grant, [1900] 1 Q. B. 88. 15 Towers v. African Tug Co., [1904] 1 Ch. 558. where is Server.Execute("_SiteMap.asp") %

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