HI there, I have an assignment to do and the question is:
Question: “A limited company not in liquidation can make no payment by way of return of capital to its shareholders except as a step in an authorised reduction of capital. Any other payment made by it by means of which it parts with moneys to its shareholders must and can only be made by way of dividing profits. Whether the payment is called ‘dividend’ or ‘bonus’, or any other name, it still must remain a payment on division of profits.” Per Lord Russel of Killowen in Hill v Permanent Trustee Co of New South Wales Ltd  AC 720 at 731. Discuss
Does anyone have any ideas on the best way to go about answering this as an essay?
Company Law - Maintenance of Share capital Watch
- Thread Starter
- 03-02-2017 21:57
- Community Assistant
- PS Reviewer
- 06-02-2017 20:44
Please read the sticky for this forum then someone might come to your help - we won't do your homework for you.