According to Russian law, joint stock companies must pay dividends on shares to their shareholders. This happens at periods and at a time determined by the society itself (with minimal legislative restrictions). The shareholders of the company at the general meeting decide on the payment of dividends.
It is necessary
It is necessary to acquire the Federal Law "On Joint Stock Companies" dated 26.12.1995. On weekdays from 20.00 to 0.00 this law (as well as other legislation) with the latest changes can be found in the legal system "Consultant" in the public domain. Website:
Instructions
Step 1
Dividends are paid from the net profit of the joint stock company, i.e. from the profit that remains with the company after deducting taxes. Such profit is determined on the basis of financial statements. The term and procedure for the payment of dividends of a joint-stock company is established by the charter of the company - its constituent document, or a decision adopted at the general meeting of shareholders. Joint-stock companies can pay dividends in the first quarter, six months, after nine months of the financial year and / or based on the results of the entire financial year.
Step 2
It is worth remembering that the authorized capital of joint stock companies can be divided into different types of shares. Accordingly, the payment of dividends on different types of shares may have its own nuances, which can be spelled out both in the law and in the charter of the company. It often happens that until a company has decided on the amount of dividends on one type of shares (for example, on cumulative shares), it is not entitled to pay dividends on other types of shares.
Step 3
The payment of dividends begins with a general meeting of shareholders of the company, at which a decision is made to pay (or declare) dividends. The amount in which dividends can be paid is determined by the executive body of the joint-stock company - the board of directors. The general meeting of shareholders is not entitled to pay dividends in a larger amount than the one set by the board of directors. The dividend payment period may not exceed 60 days from the date of the decision to pay. If dividends are not paid on time, then the person who has not received them has the right to demand the payment of dividends from the company within three years (after a 60-day period has elapsed).
Step 4
The Federal Law "On Joint Stock Companies" establishes restrictions on the payment of dividends. The main limitations are as follows:
1. The company is not entitled to pay dividends if its charter capital has not been paid in full.
2. A company in a state of bankruptcy is not entitled to pay dividends. If the payment of dividends will lead the company to bankruptcy, then it also has no right to pay them.
3. The company is not entitled to pay dividends if the value of its net assets is less than the sum of its authorized capital and reserve fund, or if the payment of dividends will lead to their value being less than this amount.
