If the company nears the zone of insolvency, this duty transfers to the creditors from the shareholders and this would mean no dividend.
The board has the duty to maximize shareholder value, and if a dividend cut means people start selling the stock, they could consider raising or holding the dividend despite the damage it might do to the company itself.
Until it has neared insolvency, the board could definitely consider what would happen in terms of a spiral effect if they lowered the dividend.
This website focuses on proverbs in the Swedish, Danish and Norwegian languages, and some parts including the links below have not been translated to English. They are mainly FAQs, various information and webpages for improving the collection.
This website focuses on proverbs in the Swedish, Danish and Norwegian languages, and some parts including the links below have not been translated to English. They are mainly FAQs, various information and webpages for improving the collection.