A SOLVENCY BASED TEST FOR DIVIDENDS

Date: 20/02/2008

Title: Position Paper No. 7 - A Solvency Based Test for Dividends

Type: Policy & Advocacy: Paper

Abstract: This position paper sets out some of AICD's views on the circumstances in which dividends can be paid. AICD has long been an advocate of a change to section 254T of the Corporations Act, to remove the requirement for dividends to be paid out of "profits", and instead rely on an overriding solvency test.

File:
Position Paper No 7 - Dividends.pdf