According to the Corporations Act, Dividends May

question 40

Multiple Choice

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.

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Definitions:

Shareholder Models

Refer to theoretical frameworks that describe how shareholders interact with and influence corporate governance and decision-making processes.

Corporate Governance

Systems, principles, and processes by which a company is directed and controlled, focusing on the relationship among various stakeholders, including shareholders and the board of directors.

Stakeholder Interaction Model

A framework for analyzing how an organization interacts with and responds to the needs of those individuals or groups that have an interest in its activities.

Primary Stakeholders

Individuals or groups with a direct interest or stake in the outcome of a project, decision, or policy, such as employees, customers, and investors.