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A dividend is a distribution to some or all shareholders of some portion of a company’s earnings—usually from its net profits. The profits retained by the company (and not paid as dividends) are known as retained earnings.

A company’s board of directors may decide to pay a dividend to one or more classes of shareholders, or to all shareholders. Dividends may be paid as cash or as additional stock. And dividends may be paid at a scheduled frequency or as a special dividend on a nonrecurring basis.

In Maine, as in other states, the payment of dividends is governed by state corporate law as well as the specific company's articles of incorporation and bylaws. Under Maine law, a corporation can distribute dividends to its shareholders out of its net profits or from its surplus, provided that the distribution does not render the company insolvent. The board of directors of the company has the authority to decide if a dividend will be paid, to which class of shareholders, and in what form—whether cash or additional stock. Dividends can be issued on a regular basis, such as quarterly or annually, or as a special, one-time distribution. The decision to pay dividends must comply with the Maine Business Corporation Act, which includes provisions to ensure that distributions do not adversely affect the corporation's financial stability. It's important for companies to adhere to these regulations to maintain corporate solvency and protect the interests of the shareholders.

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Investments

dividends

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Maine State Code

Maine State Code

Investments

dividends

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