Dividends are sums of money paid regularly (annually) to shareholders by a company out of company profits.
After approving the summary financial statements and recording the existence of distributable funds, the general meeting shall determine:

  • Where appropriate, allocations to optional reserves;
  • The number of profits to distribute to, as the case may be, shares or equity interests;
  • The amount to be carried forward, if any.

The portion of profits attributable to each share or equity interest is called dividends.

Any dividend paid in violation of the rules outlined in this article shall be a fictitious dividend.
The articles of association may allow the payment of a first dividend to be paid to securities insofar as the general meeting establishes the existence of distributable profits and provided that such profits are sufficient to cover the payments. It is calculated as an interest on the paid-up amount of shares.
Dividend payment procedures are set by all members or, failing that, by the board of directors, the general director, or the managers, as the case may be.

In any case, the payment of dividends shall take place within a maximum period of nine (9) months following the end of the fiscal year. This deadline may be extended by the competent court.

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