distributable profit
noun [ C, usually plural ]
ukus(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
non-distributable reserve