Detroit Business Daily

How could GM pay dividends up to the middle of last year?

GM's balance sheets show that they have had a shareholder DEFICIT since 2006. It is my understanding that under corporate law companies can't pay dividends if this is the case. However, GM paid dividends until the middle of 2008. How can this be?

Public Comments

1. There is no such law of accounting. The share holders do not partake in the assets and liabilities of the corporation. Therefore they can be paid dividends.
2. Stupidity mostly. The company is run by a bunch of idiots and has been form many years, actually decades.