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JV Investor is in some financial difficulty as a result of the problems with the blockchain project. Nevertheless the two shareholders, AMGL and Blue, are
JV Investor is in some financial difficulty as a result of the problems with the blockchain project. Nevertheless the two shareholders, AMGL and Blue, are hoping to receive a dividend. Although JV Investor did not make a profit in the financial year, its directors decide to pay a dividend of $0.04 per share. Is this allowed? If the payment of the dividend causes JV Investor to become insolvent, what are the consequences for the directors of JV Investor?
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