Dividend Policy
/ˈdɪvɪˌdɛnd ˈpɑːlɪsi/
Definitions
- (n.) A corporation's approach to distributing profits to shareholders as dividends versus retaining earnings.
The board reviewed the dividend policy before declaring a payout.
- (n.) Legal guidelines or corporate resolutions determining conditions for dividend payments in compliance with corporate law.
Dividend policies must align with statutory requirements to avoid shareholder disputes.
Forms
- dividend policies
Related terms
See also
Commentary
Dividend policy often balances shareholder expectations with legal constraints; clear drafting ensures compliance and reduces litigation risk.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.