May 27, 2016 came into force The order payment of dividends by joint stock company, which is approved by the National Commission on securities and stock market from 12.04.2016 number 391.
In particular, on the relevant general meeting of shareholders is defined by a specific method of payment of dividends concerning the entire issue of shares – through the depository system of Ukraine or directly to shareholders.
Implementation of dividend payments by joint stock company is going through the payment of the entire amount in full or in part, certainly if it is provided by the general meeting of shareholders or the supervisory board of the company.
At the same time, in the case of decision-making by the joint stock company to pay dividends to shares, the payment could made proportionally and simultaneously to all persons who are entitled to receive dividends.
- Regarding the payment of dividends directly to shareholders.
- Regarding the payment of dividends by the depository system of Ukraine.
Conventionally, the payment of dividends by the depository system can divided into the following stages:
- Crediting of joint stock Company in Central Depository cash account at the Clearing House;
- Providing relevant central depository settlement documents to the Clearing Centre to transfer funds on deposit accounts of depository institutions (banks or other institutions that provide services of custody, opening and management of the invoices).
- Depository institutions issued an order for the payment of dividends.
- Implementation of dividend payments depository institutions.
Payment of dividends to shareholders who are entitled, namely the transfer of the amounts of funds to all shareholders shall be effected by the transfer of funds to the shareholders during the relevant time and date that does not exceed six months from the date of the decision general meeting of shareholders of dividend payment. However, the general meeting may decide to pay dividends in shorter time.
In addition, if a shareholder during a period of six months what prescribed by law or any other period specified by the general meeting, and also for three working days after the expiry of such terms are not applied to the company regarding the payment of dividends, the appropriate money will be sent to the depository system of Ukraine, where it will remain until the moment of payment.
Additionally, note that dividends may also be other persons entitled to receive dividends, subject to the relevant documents (originals or copies) certifying that person’s right to receive dividends.
Accordingly, we can conclude that these changes will joint stock companies to choose a convenient way to pay dividends to shareholders, which is a positive step in the development of Ukrainian business.