Dividend Payments Regulated

Parliament has prohibited payments of interim dividends to shareholders. According to parliament's resolution there may be only one annual dividend payment. The move is designed to counter attempts to reduce personal income tax liability of employees by disguising their salaries as dividends but corporate shareholders may suffer as result. In addition this measure contradicts Company Law which allows shareholders to establish procedures for dividend payment at their discretion.

(Resolution of parliament of 24 May 1996 No 214)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.