Dividend when losses have negative impact on retained earnings

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Jan 1, 2008, 09:36 AM

Ruzysuzy

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Join Date: Jan 2008

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Dividend when losses have negative impact on retained earnings

Last year our company sustained 1/2 $mil loss that netted a negative in equity. Can a dividend be paid to stockholder if losses netted out retained earnings and overall equity in loss? Sole stockholder in C Corp would like to issue a dividend to offset the stockholder receivable.

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