Statute
Section 42 — Canada Business Corporations Act: Dividends
Text of the provision Official document
A corporation shall not declare or pay a dividend if there are reasonable grounds for believing that the corporation is, or would after the payment be, unable to pay its liabilities as they become due; or the realizable value of the corporation’s assets would thereby be less than the aggregate of its liabilities and stated capital of all classes.
Official source: laws-lois.justice.gc.ca
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