Statute
Section 254V — Corporations Act 2001: When does the company incur a debt?
Text of the provision Official document
(1) A company does not incur a debt merely by fixing the amount or time for payment of a dividend. The debt arises only when the time fixed for payment arrives and the decision to pay the dividend may be revoked at any time before then. (2) However, if the company has a constitution and it provides for the declaration of dividends, the company incurs a debt when the dividend is declared.
Official source: Federal Register of Legislation
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