Definition of Extraordinary Dividend
Dividend of corporation which is nonrepetitive and generally paid at irregular time because of some unusual corporate event (e.g. unusually high profits). An “extraordinary dividend” is distinguished from an “ordinary dividend” or “regular dividend” in that it is not declared from ordinary profits arising out of regular course of business of corporation and is generally declared by reasons of unusually large income or unexpected increment in capital assets due to fortuitous conditions or circumstances occurring outside of activities and control of corporation but advantageous to corporation either in stepping up its product and sales or in giving added value to its property. In re Bank of N. Y. & Fifth Ave. Bank, 105 N.Y.S.2d 211, 217, 222. See also
That's the definition of Extraordinary Dividend in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.
