constructive dividend


constructive dividend
A division of profits of a corporation among the stockholders without a formal declaration of a dividend or an intent by the directors to declare a dividend. Morgan v Wisconsin Tax Com. 195 Wis 405, 217 NW 407 218 NW 810 61 ALR 357, error dismd 278 US 583, 73 L Ed 519, 49 S Ct 186, cert den 279 US 835, 73 L Ed 983, 49 S Ct 250.

Ballentine's law dictionary. . 1998.