Once declared, a cash or property dividend cannot be revoked.

Name: Once declared, a cash or property dividend cannot be revoked.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Once a dividend has been declared, it is legally binding and cannot be taken back. This is to prevent companies from making promises to shareholders and then reneging on them later. However, companies can choose not to pay dividends in the future if their financial situation changes.

Once Declared, a Cash or Property Dividend Cannot Be Revoked