Capital conservation: Difference between revisions
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*[[Creditors]] | *[[Creditors]] | ||
*[[Dividend]] | *[[Dividend]] | ||
*[[Limited liability]] | |||
*[[Profit and Loss reserve]] | *[[Profit and Loss reserve]] | ||
*[[Reserves]] | *[[Reserves]] | ||
Revision as of 18:44, 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.
