What is a liquidating dividend

by  |  21-Nov-2019 17:13

what is a liquidating dividend-58

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A liquidating dividend is used when a corporation is dissolving and it needs to distribute its assets to its shareholders.

PART I General Provisions Chapter I Common Provisions Chapter II Trade Name of Company Chapter III Employees of a Company Section 1 Employees of a Company Section 2 Commercial Agents of the Companies Chapter IV Non-Competition after Assignment of Business PART II Stock Company Chapter I Incorporation Section 1 General Provisions Section 2 Preparation of Articles of Incorporation Section 3 Contributions Section 4 Election and Dismissal of Officers at Incorporation Section 5 Investigation by Directors at Incorporation Section 6 Appointment etc. Section 7 Formation of Stock Companies Section 8 Liability of Incorporators Section 9 Incorporation by Solicitation Subsection 1 Solicitation of Persons who Subscribe for Shares Issued at Incorporation Subsection 2 Organizational Meeting Subsection 3 Reporting of Matters regarding Incorporation Subsection 4 Election and Dismissal of Director at Incorporation Subsection 5 Investigation by Directors at Incorporation Subsection 6 Amendment in Articles of Incorporation Subsection 7 Special Provisions on Incorporation Procedures Chapter II Share Section 1 General Provisions Section 2 Shareholder Registry Section 3 Transfer of Share Subsection 1 Transfer of Share Subsection 2 Approval Procedures relating to Transfer of Shares Subsection 3 Pledging Shares Section 4 Acquisition of Own Shares by Stock Company Subsection 1 General Provisions Subsection 2 Acquisition by Agreement with Shareholders Subsection 3 Acquisition of Shares with Put Option and Shares subject to Call Subsection 4 Acquisition of Class Shares subject to Wholly Call Subsection 5 Demand for Sale to Heirs Subsection 6 Cancellation of Shares Section 5 Consolidation of Shares Section 6 Share Units Section 7 Omission to Notices to Shareholders Section 8 Issue of Shares for Subscription Section 9 Share Certificate Section 10 Miscellaneous Provisions Chapter III Share Option Section 1 General Provisions Section 2 Share Option Issue Section 3 Share Option Registry Section 4 Transfer of Share Option Section 5 Acquisition of Own Share Option by Stock Companies Section 6 Allotment of Share Options without Contribution Section 7 Exercising Share Option Section 8 Certificates for Share Options Chapter IV Organ Section 1 Shareholders Meeting and Class Meeting Section 2 Establishment of Organs Other Than Shareholders Meeting Section 3 Election and Dismissal of Officers and Accounting Auditors Section 4 Directors Section 5 Board of Directors Section 6 Accounting Advisors Section 7 Company Auditors Section 8 Board of Company Auditors Section 9 Accounting Auditors Section 10 Committees and Executive Officers Section 11 Liability for Damages of Officers, Etc.

Chapter V Accounting Section 1 Accounting Principle Section 2 Account Books Section 4 Dividends of Surplus Section 5 Special Provision on Organs that Decide Dividends of Surplus Section 6 Liability related to Dividends of Surplus Chapter VI Changes in Articles of Incorporation Chapter VII Assignment of Business Section 2 Special Liquidations PART III Companies without Share Chapter I Incorporation Chapter II Partners Section 1 Responsibility of Partners Section 2 Assignments of Equity Interests Section 3 Liability for Mistaken Acts Chapter III Administration Section 1 General Provisions Section 2 Partners who Execute Business Section 3 Persons who Perform Duties on behalf of Partners Executing Business Chapter IV Admission and Withdrawal of Partners Section 1 Admission of Partners Section 2 Withdrawal of Partners Chapter V Accounting Section 1 Accounting Principles Section 2 Accounting Books Section 3 Financial Statements Section 4 Reductions in Stated Capital Section 5 Distribution of Profit Section 6 Contribution Refunds Section 7 Special Provisions on Accounting of Limited Liability Companies Chapter VI Change in Articles of Incorporation Section 2 Liquidators Section 3 Inventory of Property Section 4 Performance of Obligations Section 5 Distribution of Residual Assets Section 6 End of Liquidation Administrations Section 7 Voluntary Liquidation Section 8 Retention of Accounting Materials Section 9 Extinctive Prescription of Partner's Liability Section 10 Exceptions to Application PART IV Bonds Chapter I General Provisions Chapter II Bond Managers Chapter III Bondholders' Meeting Part V Entity Conversion, Merger, Company Split, Share Exchange, and Share Transfer Chapter I Entity Conversion Section 1 Common Provisions Section 2 Entity Conversion of a Stock Company Section 3 Entity Conversion of a Membership Company Chapter II Merger Section 1 Common Provisions Section 2 Absorption-type Merger Section 3 Consolidation-type Merger Chapter III Company Split Section 1 Absorption-type Company Split Section 2 Incorporation-type Company Split Chapter IV Share Exchange and Share Transfer Section 1 Share Exchange Section 2 Share Transfer Chapter V Procedures of Entity Conversion, Merger, Company Split, Share Exchange, and Share Transfer Section 1 Procedures of Entity Conversion Section 2 Procedures of an Absorption-type Merger, etc.

While compensating shareholders with a liquidating dividend is somewhat rare, there are situations where this strategy is the most prudent course of action.

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