Return of Capital: A Legal or a Market Process?

Robert J. Coombes and Richard B. Tress
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Robert J. Coombes: School of Economic and Financial Studies, Macquarie University. Grateful acknowledgements to our colleagues and to a referee for their helpful suggestions
Richard B. Tress: School of Economic and Financial Studies, Macquarie University. Grateful acknowledgements to our colleagues and to a referee for their helpful suggestions

Australian Journal of Management, 1979, vol. 4, issue 2, 85-96

Abstract: In this paper we examine the implications of existing return of capital procedures which apply to Australian companies with surplus liquid assets which they wish to distribute to shareholders. This process is compared to the alternative of share repurchase. We conclude that the latter method is less time consuming and costly, and provides greater flexibility for management and shareholders without prejudicing the rights of creditors.

Keywords: LIQUIDITY; PROFITABILITY; PROTECTION OF CREDITORS; REGULATION AND EFFICIENCY; RETURN OF CAPITAL; SHARE REPURCHASE (search for similar items in EconPapers)
Date: 1979
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:4:y:1979:i:2:p:85-96

DOI: 10.1177/031289627900400201

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