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Ask the Tutor ACCA LW

Unlawful Dividend consequences

Kkizikyon6y ago
Dear Sir, kindly explain he consequences of the unlawful dividend?
MikeLittleMikeLittleTutor6y ago#1
A dividend is unlawful when it is paid at a time when there was an insufficient level of distributable profits available for the purpose Where this is the case the directors become personally liable to reimburse the company with the amount of the dividend Members are not liable to repay any dividend received that has been paid out of insufficient distributable profits unless they knew or ought reasonably to have known that the payment was an illegal distribution OK?
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