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English definition of “distributable profit”

distributable profit

noun [C, usually plural]     (also distributable reserve, also distributable surplus)
ACCOUNTING, FINANCE the amount of a company’s profit that is available to pay dividends to shareholders in a particular period: The Companies Act only allows dividends to be paid out of a company’s distributable profits. Distributable surplus for the current year totaled $363 million as compared to $417 million for the previous year. Recent losses mean the company has no distributable reserves, making a payout to shareholders illegal under rules designed to protect creditors. → Compare distributed profit, non-distributable reserve
(Definition of distributable profit noun from the Cambridge Business English Dictionary © Cambridge University Press)
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