Question
Sunny is a shareholder of a public company and is furious that the company did not pay out a dividend to any shareholders this year.
Sunny is a shareholder of a public company and is furious that the company did not pay out a dividend to any shareholders this year. The company stated that this was due to COVID-19 and a massive downturn in profits. Sunny has always received an annual dividend from the public company and relies on the money to pay annual bills. Does Sunny have a right to demand a dividend? Which one of the following is correct?
| a. | As a shareholder, Sunny has no right to demand a dividend. | |
| b. | If the company has always declared and paid out a dividend each year, a shareholder has the right to demand a dividend. | |
| c. | Sunny can apply to ASIC to have the dividend paid to him. | |
| d. | Sunny can force the company to pay out a dividend to shareholders via an online petition. |
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
