Once properly declared, the effect of a cash dividend is:

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Once properly declared, a cash dividend is considered a debt that the corporation owes to the shareholders. It is not revocable unless the board of directors determines that it is necessary to do so in order to maintain the corporation's solvency. There is no personal liability imposed on either directors or shareholders unless the corporation is insolvent and pays dividends, in which case there may be liability for illegal distributions.

Once Properly Declared, the Effect of a Cash Dividend Is