Journal article
The company dividend restriction: Does it promote good corporate governance?
Company and Securities Law Journal, Vol.21(7), pp.447-456
2003
Abstract
This article considers aspects of the development of the law associated with the dividend payment restriction. The motivation for the article is to assess whether the existing substantive law is effective in promoting sound decision-making by corporate officers who are required to determine the timing and quantum of dividend payments. Our analysis suggests that the existing provision in s 254T of the Corporations Act 2001 is unlikely to have a significant positive effect on dividend decisions. This is due to its failure to provide meaningful guidance to decision-makers; its divergence from contemporary accounting practice; and its imposition of unnecessary complexity to the dividend decision. The shortcomings identified suggest that reform of the existing provision is appropriate. Some reform proposals are briefly reviewed.
Details
- Title
- The company dividend restriction: Does it promote good corporate governance?
- Authors
- James Routledge (Author) - Bond UniversityPeter Slade (Author) - University of the Sunshine Coast - Faculty of Business
- Publication details
- Company and Securities Law Journal, Vol.21(7), pp.447-456
- Publisher
- Lawbook Co.
- Date published
- 2003
- ISSN
- 0729-2775
- Copyright note
- Copyright © 2003 Lawbook Co. This article was first published by Thomson Reuters in the Company and Securities Law Journal and should be cited as Routledge, J, Slade, P, The company dividend restriction: Does it promote good corporate governance?, 2003, 21, C&SLJ, 447. For all subscription inquiries please phone, from Australia: 1300 304 195, from Overseas: +61 2 8587 7980 or online at legal.thomsonreuters.com.au/search. The official PDF version of this article can also be purchased separately from Thomson Reuters at http://sites.thomsonreuters.com.au/journals/subscribe-or-purchase. This publication is copyright. Other than for the purposes of and subject to the conditions prescribed under the Copyright Act 1968 (Cth), no part of it may in any form or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced, stored in a retrieval system or transmitted without prior written permission. Enquiries should be addressed to Thomson Reuters (Professional) Australia Limited. PO Box 3502, Rozelle NSW 2039. legal.thomsonreuters.com.au
- Organisation Unit
- University of the Sunshine Coast, Queensland
- Language
- English
- Record Identifier
- 99449411002621
- Output Type
- Journal article
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