Article

Directors Liable For Authorizing Dividends Where Company In Distress

June 1, 2012
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Canadian corporate statutes permit companies t6 pay dividends to shareholders in money, property or by the issuance of paid shares of the corporation. Subject to any restrictions in a company's articles of incorporation, the payment of dividends is in the discretion of the company's board of directors.

Published in Carswell's Legal Alert, Volume 31, Number 3.

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