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distributable profit UK US noun [C, usually plural] (also distributable reserve, also distributable surplus)
► ACCOUNTING, FINANCE the amount of a company’s profit that is available to pay dividends to shareholders in a particular period: »
The Companies Act only allows dividends to be paid out of a company’s distributable profits.
»Distributable surplus for the current year totaled $363 million as compared to $417 million for the previous year.
»Recent losses mean the company has no distributable reserves, making a payout to shareholders illegal under rules designed to protect creditors.
→ Compare DISTRIBUTED PROFIT(Cf. ↑distributed profit), NON-DISTRIBUTABLE RESERVE(Cf. ↑non-distributable reserve)
Financial and business terms. 2012.