The effectiveness of legal restrictions on distributions to shareholders in achieving “Creditor Protection”

Type :

Presentation

Pages :

2 pages

Format :

.doc

Published date :

01/16/2009

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Summary :

 
 

Table of Contents The effectiveness of legal restrictions on distributions to shareholders in achieving “Creditor Protection” Table of Contents

 
  1. Introduction.
  2. A title representing a part of the capital of a company.
  3. Policies relating to the employ of the shareholders money.
  4. The capital maintenance concept.
  5. Creditors: Protected by two aspects of share capital.
  6. Conclusion.
  7. References.

Abstract

In this essay, I will critically evaluate the effectiveness of legal restrictions on distributions to shareholders in achieving "creditor protection". It consists of showing the good and the bad points of these restrictions. Firstly, I will define the terms used previously. Then, I will present the legal restrictions and finally, I will criticize the effectiveness of these legal restrictions. A shareholder retains a title representing a part of the capital of a company. A shareholder can be an individual or a company. He can have one or several shares. Additionally, he is one of the financial partners of the company and favors its economic development by the provision of its capitals. His catch of financial risk is remunerated by dividends poured by the firm to each of the owners of actions. "shareholders are external users.

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