Section 254U — Corporations Act 2001 (Cth)

Other provisions about paying dividends (replaceable rule—see section 135)

(1) The directors may determine that a dividend is payable and fix:

(a) the amount; and

(b) the time for payment; and

(c) the method of payment.

The methods of payment may include the payment of cash, the issue of shares, the grant of options and the transfer of assets.

(2) Interest is not payable on a dividend.

Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.

Related sections

s 254S — Capitalisation of profits
s 254SA — Companies limited by guarantee not to pay dividends
s 254T — Circumstances in which a dividend may be paid
s 254V — When does the company incur a debt?
s 254W — Dividend rights
s 254WA — Application of this Part to MCI mutual entities

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