Document ID: chunk:federal_register_of_legislation:C2010A00066:clause:1_5
Version: federal_register_of_legislation:C2010A00066
Segment Type: clause
Provision Reference: sch 1 cl 5
Character Range: 8327–8920

5  Paragraph 9.1 of the small business guide in Part 1.5
Repeal the paragraph, substitute:

9.1 Dividends
  Dividends are payments to shareholders. They can only be paid if:
• the company's assets are sufficiently in excess of its liabilities immediately before the dividend is declared; and
• the payment of the dividend is fair and reasonable to the company's shareholders as a whole and does not materially prejudice the company's ability to pay its creditors.
  It is a replaceable rule (see 1.6) that the directors decide whether the company should pay a dividend.
[sections 254T, 254U]