Tag: solvency

July 17, 2025

🧪 Solvency Test (Section 57): What It Means & How to Apply It

The solvency test is a legal financial check that must be satisfied before a company does any of the following:…

July 17, 2025

🧪 Solvency Test: Understanding the Assets vs. Liabilities Requirement

To make a legal distribution (e.g., a dividend), a company must pass the Solvency Test. This test has two parts:…

July 17, 2025

💸 Distributions to Shareholders: What Business Owners Must Know (Section 56 Explained)

When your company earns profits, you might want to reward shareholders with a distribution—often in the form of dividends. But…

July 15, 2025

Beware the Risks of Company Distributions: What Business Owners Need to Know About the Solvency Test

As a business owner, paying dividends or making distributions to shareholders feels like a great way to reward everyone for…