Abstract
Ensuring that the capital fund remains intact is meaningless unless there are further provisions to prevent the excessive payment of dividend to members. Dividend may always be paid out of profit; but a ‘dividend’ using part or all of the capital fund is merely a colourful return of capital to the members that reduces or extinguishes funds available for the satisfaction of creditors.
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© 1990 D.J.A. Alexander
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Alexander, D. (1990). Divisible profits. In: Financial Reporting. Springer, Boston, MA. https://doi.org/10.1007/978-1-4899-7118-0_12
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DOI: https://doi.org/10.1007/978-1-4899-7118-0_12
Publisher Name: Springer, Boston, MA
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Online ISBN: 978-1-4899-7118-0
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