Capital conservation: Difference between revisions
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''Company law.'' | ''Company law.'' | ||
The company law principle that capital should be conserved for the protection of creditors. | The company law principle - also known as capital maintenance - 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. | For example, dividends can only legally be paid out of retained profits, not out of capital. | ||
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== See also == | == See also == | ||
*[[Capital]] | *[[Capital]] | ||
*[[Capital maintenance]] | |||
*[[Company law]] | *[[Company law]] | ||
*[[Creditors]] | *[[Creditors]] | ||
Revision as of 20:47, 29 January 2024
Company law.
The company law principle - also known as capital maintenance - 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.
