Profits to be distributed Clause Samples
The 'Profits to be distributed' clause defines how and when the profits generated by a business or partnership will be allocated among its members or shareholders. Typically, this clause outlines the proportion or formula for distribution, such as dividing profits according to ownership percentages or another agreed method, and may specify the timing and conditions for such distributions. Its core function is to ensure transparency and prevent disputes by clearly setting expectations for how profits are shared among the parties involved.
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Profits to be distributed. The full amount of the Company’s net cash profits available for distribution (within the meaning of section 2 of the Companies Act) in respect of each financial year during the term of this agreement after the provision of working capital and making such transfers to reserves and provisions as in the opinion of the Board ought reasonably to be made, shall be distributed by the Company to the Shareholders by way of distributions on not less than an annual basis, or as and when the Board determines fit (unless the parties agree otherwise).
Profits to be distributed. Subject to the requirements of the Corporations Act, the full amount of the Company’s profits available for distribution shall be distributed on a quarterly basis or as and when the Board determines fit.