illegal dividend

Illegal dividend

A corporation's dividend that is declared in violation of its charter and/or of state laws, typically because of the way it is calculated.

Illegal Dividend

A dividend that is calculated in such a way that it violates either the charter of the corporation or applicable laws. Illegal dividends are sometimes declared, but they may not be distributed.

illegal dividend

A declared dividend that violates the corporate charter or the laws of the state in which the firm is incorporated.