distributable profit
noun[C,usually plural]
ukus(alsodistributable reserve);(alsodistributable surplus)ACCOUNTING,FINANCE
theamountof a company’sprofitthat isavailabletopaydividendstoshareholdersin aparticularperiod:
The CompaniesActonlyallowsdividendsto bepaidout of a company’s distributableprofits.
Distributablesurplusfor thecurrentyeartotaled$363 million ascomparedto $417 million for thepreviousyear.
Recentlossesmeanthecompanyhas no distributablereserves, making apayouttoshareholdersillegalunderrulesdesignedtoprotectcreditors.
Compare
distributed profit
non-distributable reserve