illegal dividend

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

illegal dividend

A declared dividend that violates the corporate charter or the laws of the state in which the firm is incorporated.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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said he could be forced to use the phone company to raise cash after investigators petitioned to sue Sistema for $4.75 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 means included "illegal dividends, excessive salaries, reimbursement of lavish personal expenses and a laundry list of other gratuitous transfers to the material" the creditors charge.
"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.
The receivers said that if the auditors had not overlooked the huge losses passed off to five paper companies in the tobashi deals, Yamaichi would not have been able to pay the illegal dividends to its stockholders.
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. Katsunobu Onogi, 63, former LTCB president, was released on bail of 20 million yen, and former Vice President Masami Suda, 59, was released on bail of 15 million yen.
illegal dividends to shareholders and falsifying the bank's financial documents for fiscal 1997, which ended March 31, last year.
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.