Capital changes and distribution of dividend

The Companies Act lays down certain formal procedures to be adhered to in connection with capital increases and reductions as well as the distribution of dividend.

Capital increases and capital reductions

In general, a capital increase or reduction must be approved by the general meeting, and certain mandatory documents must be prepared in this connection.

Resolution on distribution of dividend

A resolution on the distribution of dividend must be passed either on the basis of the most recently adopted annual report (ordinary dividend) or dividend must be distributed as extraordinary dividend.

In public and private limited companies, the general meeting may resolve to distribute extraordinary dividend or authorise the company management to distribute extraordinary dividend. Such authorisation to the management may be subject to financial restrictions and time limits.

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