illegal dividend

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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The Supreme Court on Friday acquitted three former top executives of the failed Long-Term Credit Bank of Japan, who were indicted for window-dressing the bank's financial statements to conceal massive bad loans and authorizing illegal dividend payments, overruling the lower courts' guilty verdict.
conveyance and illegal dividend payments in connection with
on Tuesday corrected its unconsolidated earnings for the past several years and admitted that it had paid some 28 billion yen in illegal dividend payouts when necessary profits to justify such payouts were lacking.
6 billion yen in damages from 13 former executives, including three former presidents, for losses stemming from alleged illegal dividend payments and questionable loans.
The bank filed the lawsuits with the Utsunomiya District Court against some 10 former managers, including the former presidents -- Hisao Mukae, Yoshio Yanagita and Shin Iizuka -- claiming they had made illegal dividend payouts and extended loans that were deemed irrecoverable, according to the regional bank which is based in Utsunomiya, Tochigi Prefecture.
The action was taken as the executives are responsible for negligence of duty and illegal dividend payments, Kazuhiko Shimokobe said after filing the suit with the Tokyo District Court.
The illegal dividend payments were deemed to infringe on the Commercial Code.
The RCC believes that the illegal dividend payments could have been avoided if Ota Showa had implemented an appropriate audit, the sources said.
796 billion yen loss through illegal dividend payments.
The court stated that, after the defendants' counsel filed its motion to dismiss the first complaint, plaintiff's lead counsel "dropped nearly every serious (and scurrilous) allegation against defendants," such as allegations about conflicts of interest, illegal dividends and self-dealing by the Company's CEO, Evangelos Pistiolis.
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.