From: gts (gts@optexinc.com)
Date: Thu Sep 12 2002 - 11:08:47 MDT
Rafal,
> gts wrote:
>
> > Sorry but you are totally mistaken. The board of directors has no
> > obligation to pay dividends to shareholders at any time.
>
> ### If the shareholder meeting decides that dividends are to be paid,
> dividends are paid.
Sure, the owners can do anything they want. I should have used different
language to make that explicit. I was merely objecting to Lee's claim
that the board *must* eventually pay dividends in every case.
The question here again is whether a corporation must eventually pay
dividends to have value to shareholders. The answer is no, because
retained earnings are reflected in the share price. Shareholders can
sell shares to realize profits.
-gts
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