Cohen,_NO_v_Segal
Cohen, NO v Segal[1] is an important case in South African law. It was heard in the Witwatersrand Local Division by Boshoff J on March 17, 1970, with judgment handed down on April 28. The case is significant for its finding that a dividend cannot be declared which has the effect of diverting a portion of the corpus of the company to the shareholders. A dividend may therefore, generally speaking, only be declared out of profits, and a resolution which declares a dividend to be paid out of the capital of the company is ultra vires the company.[2]