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.
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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Under Zukri's leadership, TH managed to clean up the fund's balance sheet following years of accumulated deficit which have led to illegal dividend payments to its depositors since 2014.
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.
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.
UTSUNOMIYA, Japan - Ashikaga Bank, which is undergoing rehabilitation under state control, filed three lawsuits Friday seeking a combined 4.6 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 bank said the former executives made illegal dividend payments of 1.1 billion yen to the holders of preferred shares by window-dressing the bank's financial statement for fiscal 2000.
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.
The lawsuit, filed by the current Sogo management, focuses on three claims: a 2.693 billion yen loss through dealings with the Sogo affiliate Cho-ompa Co., a 6.761 billion yen loss in Sogo's project to build a department store in Turkey, and a 1.796 billion yen loss through illegal dividend payments.
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.
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.