Geoffrey Richmond refused to say how much the deal to buy back the club he put into administration will cost.
But the Creditors' Voluntary Agreement, drawn up by administrators Kroll Buchler Phillips, says the plan he and the Rhodes family put forward will secure the club's future.
It states: "The administrators are satisfied that there are sufficient funds available to the investors to meet the funding requirements of the company."
Four separate dividends, ranging from £425,000 to £3,750,000, were paid to shareholders between April 1999 and August 2000, angering some fans.
In the CVA, the administrators state: "(These payments) all relate to a period when Bradford City was in the Premiership and had a reasonable expectation of continuing to trade and not in the financial difficulties it now faces."
It adds that Mr Richmond, along with David and Julian Rhodes, provided "significant financial support" to the company in recent years in the form of personal guarantees on loans.
Mr Richmond had a £250,000 consultancy fee from the club last October but the administrators said this was the only payment he had taken from the club in seven years as chairman.
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