According to the Corporations Act, dividends may:
A) only be paid to shareholders once a year.
B) only be paid out of the current year's profits of a company.
C) be declared and paid to shareholders irrespective of whether a company has accumulated losses.
D) be paid if the company has an excess of assets over liabilities.

Question

Quizplus · Accepted Answer

Dividends can be paid if the company has an excess of assets over liabilities, ensuring that the company remains solvent after the dividend is paid, as per the Corporations Act.

According to the Corporations Act, Dividends May