As a result of the passage of the 1984 Revised Model Business Corporation Act,it may be fair to state that

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The passage of the 1984 Revised Model Business Corporation Act introduced various provisions that affected the calculation and distribution of dividends from a corporation. One such provision was the creation of a "capital impairment test" that mandated the consideration of various factors, such as the company's expected future cash flows and capital needs, in determining whether a dividend payment is legal or not. As a result, the book value of owners' equity may not give an accurate picture of potentially legal distributions, as it does not take into account these additional factors that may impact the company's ability to pay dividends.

As a Result of the Passage of the 1984 Revised