Abstract
Under the law, distribution of profits or dividends may only be paid to members of a company if there are profits available for that purpose. The Companies Act 2016 requires that the company can only make the distribution to the shareholders out of profit if the company is solvent. Previously, in the Companies Act 1965, the company can pay dividends to its shareholders out of its profits and there is no requirement that the company must fulfill the
solvency test. The aim of this paper is to look at the new requirement of solvency test and in what circumstances the company can pay out its dividends. It also examines the effects of non-compliance with the solvency requirements
and the implications to the company and directors (if any) under the Act.
Metadata
| Item Type: | Book Section |
|---|---|
| Creators: | Creators Email / ID Num. Mansor, Hariati UNSPECIFIED |
| Contributors: | Contribution Name Email / ID Num. Patron Kassim, Mohd Azraai UNSPECIFIED Patron Joyosumarto, Subarjo UNSPECIFIED |
| Subjects: | H Social Sciences > HG Finance > Profits. Corporate profits K Law > K Law in general. Comparative and uniform law. Jurisprudence > Commercial law > Insolvency and bankruptcy. Creditors' rights |
| Divisions: | Universiti Teknologi MARA, Johor > Segamat Campus |
| Series Name: | Secretariat of IABC 2019 |
| Volume: | 6th |
| Page Range: | p. 47 |
| Keywords: | Dividends; Profits; Insolvency test; Non-compliance; UiTM Cawangan Johor |
| Date: | 2019 |
| URI: | https://ir.uitm.edu.my/id/eprint/38205 |
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