Which statement about a company paying a dividend is correct?

A company has specific legal obligations when it comes to paying dividends, and the laws generally guard against the payment of unlawful dividends to protect creditors and maintain financial integrity. When dividends are declared in violation of statutory provisions or corporate bylaws, those dividends can be considered unlawful.

In such cases, the law allows for reclaiming those unlawful dividends from shareholders or directors who may have received them. This principle is critical as it reinforces responsible financial management within a corporation, ensuring that dividends are paid only from appropriate sources, such as profits or retained earnings, as dictated by relevant legal frameworks.

The other options do not accurately represent the legal framework surrounding dividends. For example, dividends cannot be partially funded from the share premium account, as this account serves specific purposes and is not typically a source for dividend payments. Additionally, while members can influence dividend payments, they cannot simply increase the dividend against the board's recommendation unless defined procedures are followed at a general meeting. Moreover, while preference shares may have a preferential treatment regarding dividend payments, they are not guaranteed payment regardless of profit if proper procedures aren't followed.

Overall, the principle of reclaiming unlawful dividends is a vital concept that underscores the adherence to corporate financial regulations and the protection of the interests of all stakeholders involved.