Directors' Resolution to Pay a Dividend (Circulating Resolution)
This Directors' Resolution can be used to decided, on behalf of the company, to pay a dividend to shareholders.
(0 reviews)
Under 3 minutes
Suitable for Australia
Document Overview
A company can pay dividends to its shareholders upon a resolution of the board. Under section 249T of the Corporations Act 2001 (Cth), the company can only pay dividends where:
- its assets exceed its liabilities;
- the payment of the dividend is fair and reasonable to the shareholders; and
- the payment of the dividend does not prejudice the company's ability to pay its creditors.
This resolution is effective for both final and interim dividends.
The company should be careful with how it structures its dividend payment. It should follow the procedure set out in replaceable rule 249U of the Corporations Act 2001, or the company constitution if it specifies such a procedure. Any complex details should be advised on by a lawyer.
This resolution can be inserted into:
Where you wish to pass the resolution in a directors' meeting, you must use the documents above. Simply copy and paste the text of the resolution.
It's never been so easy
Sign-up to a free Lawpath account
Get started and we’ll take care of you. It’s that easy.
Collaborate with e-Sign and Sharing
Having access to your legal documents has never been easier. You can request e-signature, share the document and download for an efficient collaboration.
Create unlimited legal documents and eSignatures for only $39/month.
Upgrade to a Lawpath legal plan to boost your new business.
Here's what people say about Lawpath’s Directors' Resolution to Pay a Dividend (Circulating Resolution)
Reviews are managed by BazaarVoice and comply with the BazaarVoice Authenticity Policy. Reviews are independently verified by BazaarVoice and detail our customers' real experiences.