Dividendai ir jų mokėjimas: teisinis vertinimas ; Dividend and dividend payout: legal assesment

Abstract

Dividends and dividend operations can be divided into three sections – the decision of dividend policy in the company, dividend payout and dividend taxation. All these sections contain certain problems. By the Lithuanian law, the companies are not obliged to define or create dividend policy. Dividend policy provides information to the investor concerning the company's performance. Therefore, if the company is not paying dividends, investors may presume the company is unstable, unattractive, without guarantees. the european union legislation establishes certain manifestations of an obligatory dividend policy. Without the general dividend payout policy, the general restrictions and conditions of dividend payment, the special dividend payment restrictions and conditions, which are being applied to financial institutions, are defined by the Lithuanian and European Union legal acts. The special attention is given to financial institutions due to the unfavorable economic situation in the world. Dividends are obligation of company for shareholders, who are entitled to sue out dividends from the company as creditors. Often companies decide not to pay dividends, though they have enough income to do so. The Lithuanian case law for non – payment of dividends is occurring, but such cases are not often examined.