A Company Can Lawfully Make a Payment to Its Shareholders

question 34

True/False

A company can lawfully make a payment to its shareholders by way of dividend within the year before its bankruptcy.

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Definitions:

Constructive Trust

A trust inferred by the courts to benefit a third party to a contract.

Misrepresentation Remedies

Legal solutions available to someone who has suffered loss due to false statements, including rescission of contract or damages.

Modern Business

Contemporary commercial activities characterized by innovations, digital processes, and new operational models.

Assignment

The transfer of rights or property from one party to another, often used in reference to contracts or leases.