Joe is a shareholder of XYZ Corporation, an extremely profitable company in the software business, and was

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Joe is a shareholder of XYZ Corporation, an extremely profitable company in the software business, and was upset when the directors of the company refused to declare a dividend again, ploughing the money back into research and development. Joe sued, along with several other shareholders, claiming that there was no excuse for withholding dividends under these circumstances. Explain the likely outcome.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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