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The Allocation of Profits

descriptionPublicationkeyboard_double_arrow_right Part of book or chapter of book , Other literature type 01 Jan 1969Publisher:Palgrave Macmillan UK

Authors: Kenneth Midgley; Ronald G. Burns;

doi: 10.1007/978-1-349-15309-1_10 , 10.1007/978-1-349-01829-1_10 , 10.1007/978-1-349-16186-7_10

The Allocation of Profits

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Abstract

This final chapter irr the section concerned with financial control examines the way in which the profit an organisation makes is allocated to the various competing claims. This allocation is made by the directors, and although it might appear a formality, because all profits after paying dividends on earlier ranking capital belong to the ordinary-share holder, in practice it is rather more complicated. The ordinary-share holder never does get his full due immediately, be it because of Government policy, or directors building up the company over which they hold power, or any of the other diverse reasons discussed hereafter.

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