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Assume the Koala Ltd has lost money every year since it was formed. The company has $50,000 in the bank and the directors want to

Assume the Koala Ltd has lost money every year since it was formed. The company has $50,000 in the bank and the directors want to pay the full amount as a dividend. Can they pay the dividend?

What would be the consequences for the directors if they paid the dividend and the company had no money left to pay its debts?[4 marks]

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