On 30 June 2011 the directors of Tagalong limited determined that a final dividend of $1.27 per share should be paid by the company. They agreed the dividend would be paid in cash and fixed the date of payment as 30 September 2011. The next month directors revoked the dividend payment after receiving advice from the companys accountants that there would be insufficient profits available to finalise payment. The members threatened legal action to recover payment. The directors confirmed that the constitution of the company comprised all of the replaceable rules from the Corporations Act. Discuss the legal position.

explain in Australian tax law.