An accumulated dividend is a dividend that has not been paid to a holder of cumulative preference shares and is carried forward to the next accounting period. It represents a liability to the company and must be disclosed under the Companies Act if in arrears.
The corporate veil is a legal concept that separates the actions and liabilities of a corporation from its shareholders or officers, offering them protection against personal liability. Courts may pierce the corporate veil to hold individuals accountable for a corporation's actions.
Directors' and Officers' Liability Insurance (D&O Insurance) offers coverage for the personal liabilities of corporate directors and officers arising from their actions or decisions made on behalf of the company. This insurance provides protection against legal judgments and the associated costs of defense such as legal fees and court costs.
Lifting the veil of incorporation is an exceptional legal process where the separate legal entity principle of a corporation is disregarded to hold its members or directors personally liable, often applied in cases of wrongful or fraudulent trading.
An unpaid dividend is a dividend declared by a corporation's board of directors that has not yet been distributed to shareholders. Once declared, it becomes a corporate liability until paid.
