What to keep in mind
Review approved financial statements, reserves, cash needs, dividend history and payments or related-party arrangements that may disguise distributions.
Accounting profit is not identical to immediately available cash.
Distinctions often confused
Participation in earnings does not amount to an unconditional right to a dividend every year.
Frequently asked questions
Can the majority decide to retain all earnings?
Retention may be justified but must respect legal limits and the prohibition of abuse.
What if directors are remunerated but shareholders receive no dividend?
Remuneration, justification and conflicts of interest may warrant review.
Informational content. It is not a substitute for professional advice.