Dividend payments - CSA recommends introduction of solvency test

While CSA supports the repeal of the current profits test in principle, the first test should be a test of solvency at the time the dividend is paid, rather than a test that looks at a companys assets. CSA recommends that the law be aligned with most companies constitutions, which refer to determining dividends, rather than declaring them as the current provision is phrased. The critical time for considering solvency is not when the dividend is declared but when it is paid ... READ MORE

Released by 8 February 2012