Like regular dividends,constructive dividends must be distributed to a corporation's shareholders on a pro rata basis.

Question

Quizplus · Accepted Answer

Constructive dividends are not actual distributions of cash or property to shareholders. They are instead deemed or implied distributions of corporate assets, often in the form of personal benefits or expenses paid on behalf of shareholders. Therefore, they are not required to be distributed on a pro rata basis like regular dividends.

Like Regular Dividends,constructive Dividends Must Be Distributed to a Corporation's