What is the nature of a dividend?

Canada (Federal), Canada

The following excerpt is from Larouche v. The Queen, 2008 TCC 448 (CanLII):

It is important to note, first, what the nature of a dividend is and what payment of a dividend means. In Neuman v. M.N.R., 1998 CanLII 826 (SCC), [1998] 1 S.C.R. 770, Iacobucci J. rejected the argument that payment of a dividend is related to the amount of effort deployed by the recipient on behalf of the corporation, which would constitute valuable consideration. He quoted a remark of La Forest J. in McClurg v. Canada, 1990 CanLII 28 (SCC), [1990] 3 S.C.R. 1020: "a dividend is received by virtue of ownership of the capital stock of a corporation" and it is "a fundamental principle of corporate law that a dividend is a return on capital which attaches to a share, and is in no way dependent on the conduct of a particular shareholder".

Other Questions

Can a grievor change the nature of his grievance at this hearing by expanding the scope of and time during which he requests a remedy? (Canada (Federal), Canada)
Is a dividend a transfer of property within the meaning of subsection 160(1) of the Corporations Act? (Canada (Federal), Canada)
What is the legal nature of the sales at issue? (Canada (Federal), Canada)
What is the test for determining what is in the nature of income? (Canada (Federal), Canada)
Is a policy decision not in the nature of a legislative act? (Canada (Federal), Canada)
What is the test for "an adventure in the nature of trade"? (Canada (Federal), Canada)
What is the test for determining the true nature of a relationship? (Canada (Federal), Canada)

There are no other similar questions at this time.