Generally, legal constraints prohibit the payment of cash dividends until a certain level of earnings has been achieved or limit the amount of dividends paid to a certain dollar amount or percentage of earnings.

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Legal constraints do not necessarily prohibit the payment of cash dividends, but they may limit the amount of dividends paid based on factors such as earnings, available cash, and shareholder preferences. Some companies may choose to prioritize reinvesting their profits into the business rather than paying dividends, but this decision is typically driven by business strategy, not legal constraints.

Generally, Legal Constraints Prohibit the Payment of Cash Dividends Until