illegal dividend

(redirected from Illegal Dividends)

Illegal dividend

A corporation's dividend that is declared in violation of its charter and/or of state laws, typically because of the way it is calculated.

Illegal Dividend

A dividend that is calculated in such a way that it violates either the charter of the corporation or applicable laws. Illegal dividends are sometimes declared, but they may not be distributed.

illegal dividend

A declared dividend that violates the corporate charter or the laws of the state in which the firm is incorporated.
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75 billion of what they said were illegal dividends received from oil company OAO Bashneft.
Last month, Sanyo corrected its unconsolidated earnings for the years from fiscal 2000 and admitted that it had paid around 28 billion yen in illegal dividends when the profits necessary to justify the payments were lacking.
The taxman is increasingly likely to argue that excessive or illegal dividends should be re-classed as earnings or be repayable to the company," he said.
Presiding Judge Hiromu Kurihara said Mita bears grave responsibility for aggravated breach of trust, bribery and giving illegal dividends to shareholders after falsifying the firm's earning reports.
Illegal Dividends -- Directors may be held personally liable to the corporation, or to the corporation's creditors in the event of dissolution or insolvency, for any willful or merely negligent payment of an unlawful dividend.
on Tuesday over alleged financial window dressing in 1998 and 1999 to pay illegal dividends, police sources said.
Chuo Auditor, based in Tokyo, "was remiss in duties it was supposed to fulfill as auditor and allowed (Yamaichi) to pay illegal dividends in the fiscal period ending March 1997," the receivers said.
and a four-year term for its one-time president for concealing losses of over 200 billion yen and paying illegal dividends to shareholders.
The Tokyo District Court on Tuesday set the bail for three former executives of failed Long-Term Credit Bank of Japan (LTCB) who were indicted last Wednesday on charges of falsifying the bank's loan records and paying illegal dividends.
The panel, composed of a core group of seven lawyers recommended by the Japan Federation of Bar Associations, reported it was highly possible that former executives violated the Commercial Code and the Securities and Exchange Law by underreporting bad loans and providing illegal dividends to shareholders.
At present, the Tokyo Public Prosecutors Office is investigating LTCB managers on suspicion they may have falsified data on the bank's financial statement and that they paid illegal dividends on the basis of bogus profit numbers on the bank's balance sheet for fiscal 1997, investigative sources said.