/

/

United States legal-change intelligence across legislation, regulation, and case law. Separate data plane, same Zoe spine.

Platform

Legislation
Cases
Ask Zoe

Company

Pricing
API
X
LinkedIn
Instagram

Jurisdictions

Federal
Supreme Court
Alabama

District of Columbia

© 2026 Zoe. All rights reserved.

Zoe is a legal information platform. Always consult the official source for authoritative text.

Legislation Cases Absurdities Ask Zoe Graph Pricing

Home/Legislation/Corporations Act 2001/254V

CTHIn ForceAct

Corporations Act 2001

254VWhen does the company incur a debt?

Start here

Get a plain-English read of 254V

Turn the raw legal text into a practical explanation grounded in Corporations Act 2001.

View in full context

#### 254V When does the company incur a debt? (1) A company does not incur a debt merely by fixing the amount or time for payment of a dividend. The debt arises only when the time fixed for payment arrives and the decision to pay the dividend may be revoked at any time before then. (2) However, if the company has a constitution and it provides for the declaration of dividends, the company incurs a debt when the dividend is declared.

Previous section254UOther provisions about paying dividends (replaceable rule—see section 135)Next section254WDividend rights

Section 254V - Corporations Act 2001 - When does the company incur a debt? — Zoe