Dividends are part of the profitthe company of shareholders, which is paid to them according to the decision of the general shareholder meeting for the issued shares. It can also be said that the dividend is a certain income of the shareholder, transferred by the shareholder meeting in accordance with the established procedure.
The profit of the shareholders' meeting, which paiddeductions to compulsory funds and taxes to the state, is used in several directions - to pay dividends and expand the activities of the joint-stock company. The amount of payment of dividends is determined based on the results of the work of the joint-stock company. In another way, it can be said that the size of dividends depends on the size of the profit that passed the dividend policy. The first half of the dividend profit is charged to the profit for the company, and the second part of the profit goes to the needs of the joint-stock company. When the joint-stock company actively develops, the profit of dividends will not be very great.
The general shareholder meeting determines the fact, what dividends and in what amount will be paid to shareholders. But, dividends, that is, their size, can not be increased by the shareholders themselves.
It can also be said that the dividends are netprofit, which comes to one share from the joint-stock company to conclude the current year. Distributed dividends among the shareholders themselves in accordance with the type and category of shares. The profit can be determined both in the money symbol and in percent, but the dividends can not be a large size, which is recommended by the board of directors.
Dividends that are paid by the joint-stock companysociety, can be classified according to several characteristics - on preferred and ordinary shares. Ordinary shares, in turn, perform the following functions:
- Certificate of participation in the joint-stock company and granting the right to vote;
- Permission to the right to receive dividends themselves, as well as some of the property of the company, if the joint-stock company is liquidated.
Preferred shares give the following advantages:
- Their owners receive AO revenue first;
- If the joint-stock company is liquidated, the holders of shares are entitled to receive part of the assets of the joint-stock company in accordance with the share that is expressed in the value of the shares.
Dividends are accrued, and also paid onthose shares that are directly in the hands of the shareholder and, in addition, fully paid for them. The amount of payment of dividends can be either full or partial. For example, gasprom dividends are paid in accordance with the dividend policy, and their size is about 25% of the total profits of Gazprom. Much earlier, the size of such a concept as payment of dividends was approximately 17.5%.
Dividends are not accrued for those shares that:
- Not issued or not posted;
- Acquired, but located on the balance sheet of the joint-stock company by the result of the decision of the Board of Directors;
- Treasury shares, but by the decision of the Board of Directors on the balance sheet of the company;
- Shares, which came at the disposal of the joint-stock company due to failure to fulfill the obligations of the buyer of shares.
Dividends are paid in cash,other property, own shares or subsidiaries. The deadline for payment of dividends is determined by the charter of the shareholders' meeting. The joint-stock company is subject to taxation, with the payment of dividends, AO makes directly withholding taxes. The recipients of dividends can be both shareholders and nominal holders of shares, which are entered in the register of the joint-stock company in a certain established order. If a nominee shareholder is listed in the register, then he is liable for the dividends listed.