The Corporations Act states that a dividend must not be paid by a company:
A) if it would make the company insolvent.
B) unless the company has first obtained the approval of all creditors.
C) until it has been operating for a minimum of five years.
D) before the end of a financial year.

Question

Quizplus · Accepted Answer

The Corporations Act states that a dividend must not be paid by a company if it materially prejudices the company's ability to pay creditors.

The Corporations Act States That a Dividend Must Not Be