Capital conservation

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.

See also

• Capital
• Capital maintenance
• Company law
• Creditors
• Dividend
• Limited liability
• Profit and Loss reserve
• Reserves
• Retained earnings
• Share capital
• Share premium