Distributable reserves
Profits legally available for a company to pay dividends. Paying dividends without sufficient distributable reserves can create repayment and director-liability issues.
Related terms
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Profit
The financial surplus remaining when income exceeds the relevant costs and expenses over a period.
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Profit and loss account
A financial statement showing income, costs and profit or loss over a period.
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Ranking
The order of priority in which creditors or security interests are paid from available assets.
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