Capital conservation: Difference between revisions
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''Company law.'' | |||
The company law principle that capital should be conserved for the protection of creditors. | |||
For example, dividends can only legally be paid out of retained profits, not out of capital. | |||
== See also == | == See also == | ||
*[[Capital]] | *[[Capital]] | ||
*[[Company law]] | |||
*[[Creditors]] | |||
*[[Dividend]] | *[[Dividend]] | ||
*[[Profit and Loss reserve]] | |||
*[[Reserves]] | |||
*[[Retained earnings]] | |||
*[[Share capital]] | |||
*[[Share premium]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
Revision as of 17:57, 4 June 2021
Company law.
The company law principle that capital should be conserved for the protection of creditors.
For example, dividends can only legally be paid out of retained profits, not out of capital.
