Distribution of profits under the companies act 2016: satisfying the Insolvency Test / Hariati Mansor

• Main Author: Mansor, Hariati
• Format: Article
• Language: English
• Published: UiTM Cawangan Johor 2019
• Subjects: Profits. Corporate profits; Insolvency and bankruptcy. Creditors' rights
• Online Access: http://ir.uitm.edu.my/id/eprint/42290/1/42290.pdf; http://ir.uitm.edu.my/id/eprint/42290/; https://insightjournal.my/
• Institution: Universiti Teknologi Mara

Under the law, distribution of profits or dividends may only be paid to members of a company if there are profits available for that purpose. The Companies Act 2016 requires that the company can only make the distribution to the shareholders out of profit if the company is solvent. Previously, in t...