Post by
Timminsgold on Jun 15, 2015 12:21pm
Dividend
If LSG decides to use the capital from the loan payment, it will go a long way to paying an initial dividend. It will also put the mounting cash flow to a more productive use, and not create a large cash bonus to anyone offering a buyout.
Comment by
JRaffles on Jun 16, 2015 2:44am
I assume that Canadian company law permits the payment of dividends when there is an accumulated trading deficit? UK laws permits the payment of dividends out of an accumulated surplus (even if there were to be a current yesar loss) - in the alternative, dividends would be paid out of shareholders capital.