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- Title
PROPERTY DIVIDENDS AND LAW.
- Authors
Briggs, L. L.
- Abstract
The word dividend usually refers to a distribution of corporate profits to stockholders in the form of cash. However, corporations may find it convenient or necessary to distribute their earnings in the form of property among their shareholders, and, when stockholders are few and the corporate property is readily divisible without decreasing its value there may be little, if any, objection to this method of distribution. In order to meet this need of modern business, various forms of property distributions, in addition to cash, stock, and scrip dividends, have been recognized and approved by the courts. The general rule is that when a corporation has accumulated sufficient property other than cash to justify a division among its stockholders, the directors, at their discretion, may pay dividends in specific property, if there is no statute or charter to the contrary. A corporation may make a property dividend of its own stock which has been purchased with surplus assets. A dividend of a company's own bonds is legal if it does not impair the capital stock of the concern.
- Subjects
UNITED States; DIVIDENDS; CORPORATE profits; STOCKHOLDERS; DIVIDEND reinvestment; ASSETS (Accounting); EARNINGS per share
- Publication
Accounting Review, 1932, Vol 7, Issue 3, p169
- ISSN
0001-4826
- Publication type
Article