dc.contributor.author |
Keating, Mark |
en |
dc.date.accessioned |
2012-04-11T00:09:44Z |
en |
dc.date.issued |
2010-06 |
en |
dc.identifier.citation |
New Zealand Universities Law Review 24(1):75-97 Jun 2010 |
en |
dc.identifier.issn |
0549-0618 |
en |
dc.identifier.uri |
http://hdl.handle.net/2292/16955 |
en |
dc.description.abstract |
When payment of a dividend is complete has many consequences for the company and its shareholders. It would therefore be expected that the legal treatment of that dividend was consistent between company law and tax. However, competing High Court decisions differ over the status of dividends declared by a company that subsequently becomes unable to pay the dividend without breaching the solvency test prescribed by the Companies Act 1993. A series of company law cases have extended the solvency test so it applies both when a dividend is declared and when it b subsequently paid out to the shareholders, often years later. By contrast, a recent tax case determined a dividend is complete and irreversible immediately it is declared, regardless of whether those funds have been paid out to shareholders. This article considers the different statutory regimes for company and tax law and compares the consequences for both the company and its shareholders to determine whether the divergent treatment can be reconciled. The author concludes the reasoning in the company law cases is flawed and prefers the analysis adopted in the tax decision. |
en |
dc.publisher |
Brookers Ltd. |
en |
dc.relation.ispartofseries |
New Zealand Universities Law Review |
en |
dc.rights |
Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. Details obtained from http://www.sherpa.ac.uk/romeo/issn/0549-0618/ |
en |
dc.rights.uri |
https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm |
en |
dc.title |
Payment and Cancellation of Dividends: When Two Worlds Collide |
en |
dc.type |
Journal Article |
en |
pubs.issue |
1 |
en |
pubs.begin-page |
75 |
en |
pubs.volume |
24 |
en |
dc.rights.holder |
Copyright: Brookers Ltd. |
en |
pubs.author-url |
http://www.nzulr.com/archives/vol24no1.htm |
en |
pubs.end-page |
97 |
en |
dc.rights.accessrights |
http://purl.org/eprint/accessRights/RestrictedAccess |
en |
pubs.subtype |
Article |
en |
pubs.elements-id |
168915 |
en |
pubs.record-created-at-source-date |
2010-11-02 |
en |