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    Profit of The Company

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    Olga Sîrbu
    This document discusses a company's income, dividends, and dividend payments. It states that a company's net income after mandatory payments can be used to cover losses, fund reserves, pay board members, invest in development, pay dividends, and other company needs. The general shareholders meeting decides on annual income distribution based on a proposal from the board. Dividends are a share of net assets distributed to shareholders proportionally. A company must meet several criteria to issue a dividend payment decision, including being solvent and having sufficient net assets. The board decides interim dividends while the general shareholders meeting decides annual dividends.

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    Profit of The Company

    Uploaded by

    Olga Sîrbu
    25 views2 pages
    This document discusses a company's income, dividends, and dividend payments. It states that a company's net income after mandatory payments can be used to cover losses, fund reserves, pay board members, invest in development, pay dividends, and other company needs. The general shareholders meeting decides on annual income distribution based on a proposal from the board. Dividends are a share of net assets distributed to shareholders proportionally. A company must meet several criteria to issue a dividend payment decision, including being solvent and having sufficient net assets. The board decides interim dividends while the general shareholders meeting decides annual dividends.

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    This document discusses a company's income, dividends, and dividend payments. It states that a company's net income after mandatory payments can be used to cover losses, fund reserves, pay board members, invest in development, pay dividends, and other company needs. The general shareholders meeting decides on annual income distribution based on a proposal from the board. Dividends are a share of net assets distributed to shareholders proportionally. A company must meet several criteria to issue a dividend payment decision, including being solvent and having sufficient net assets. The board decides interim dividends while the general shareholders meeting decides annual dividends.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views2 pages

    Profit of The Company

    Uploaded by

    Olga Sîrbu
    This document discusses a company's income, dividends, and dividend payments. It states that a company's net income after mandatory payments can be used to cover losses, fund reserves, pay board members, invest in development, pay dividends, and other company needs. The general shareholders meeting decides on annual income distribution based on a proposal from the board. Dividends are a share of net assets distributed to shareholders proportionally. A company must meet several criteria to issue a dividend payment decision, including being solvent and having sufficient net assets. The board decides interim dividends while the general shareholders meeting decides annual dividends.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    INCOME OF THE COMPANY AND DIVIDENDS

    Article 47. Income (Losses) of the Company


    (1) Income (losses) of the company shall be determined in conformity with the procedure
    envisioned in the legislation.
    (2) Net income shall be formed after payment of debts and other mandatory payments and shall
    remain at the disposal of the company.
    (3) Net income shall be channeled for:
    a) covering of losses of previous periods;
    b) formation of the reserve capital;
    c) payment of remuneration to the members of the Board of the company and the Auditing
    Commission;
    d) investment in the production development;
    e) dividend payment; and
    f) satisfaction of other needs of the company in conformity with legislation and the Charter of
    the company.
    (4) Decision on income distribution during fiscal year shall be made by the Board of the
    company within the limits of norms adopted by the general shareholders meeting, while the
    decision on the distribution of the annual income shall be made at the general shareholders
    meeting at the proposal of the Board of the company.

    Article 48. Dividends


    (1) Dividends shall be deemed part of net assets of the company distributed among shareholders
    by the class and proportionally to the number of shares belonging to them.
    (2) The company is entitled to pay interim (quarter, semi-annual) and annual dividends on
    outstanding shares.
    (3) The company is not entitled to guarantee dividend payment.
    (4) The company obligations with regard to dividend payment shall take effect on the day of
    announcing the decision on their payment.
    (5) The company is not entitled to issue a decision on dividend payment:
    a) prior to redemption of placed shares subject to redemption in conformity with paragraph (2) of
    Article 79.
    b) if on the date of making the decision on dividend payment, the company is insolvent or
    dividend payment will lead to its insolvency;
    c) if the net asset value in the last balance sheet of the company is lower than its statutory capital
    or will become lower as a result of dividend payment;
    d) for common shares, if no decision has been made on dividend payment for preferred shares;
    e) for any shares if was not made on due interest payment for bonds.

    Article 49. Dividend Payment


    (1) Decision on the payment of interim dividends shall be made by the Board of the company,
    and the decision on the payment of annual dividend shall be made by the general shareholders
    meeting at the proposal of the Board of the company.
    (2) The decision on dividend payment shall specify:
    a) the date as of which the list of shareholders entitled to dividend is drawn up;
    b) amount of dividend per share of each class;
    c) the form and term of dividend payment.
    (3) For each payment of dividends the Board of the company shall provide for drawing up the
    list of shareholders eligible to receive dividends.
    (4) The list of shareholders eligible to receive interim dividends shall include shareholders and
    nominal holders of shares registered in the share registry no later than 15 days before the
    decision on interim dividends payment was made. The list of shareholders eligible to receive
    annual dividends shall contain shareholders and nominal holders of shares entered into this
    registry as of the date set by the company Board in conformity with paragraph (2) and (5) of
    Article 54.
    (5) General shareholders meeting is entitled to approve annual dividends in the amount no lower
    than the paid interim dividends.
    (6) The amount of the declared dividend per one share of the same class shall be the same
    irrespective of the term of share placement.
    (7) Dividend shall be paid in cash, and in the cases envisioned in the Charter of the company in
    treasury shares or shares of the additional issuance or other assets the civil turnover of which is
    not prohibited or limited by legislative acts.
    (8) A special fund made of deductions from net income of the company may be formed for
    payment of fixed dividend on preferred shares.
    (9) Dividend on shares of one class can be paid by shares of another class only at the consent of
    the decisions made in the manner stipulated in paragraph (10) of Article 25.
    (10) The term of dividend payment shall be determined by the body which made the decision of
    payment in conformity with the Charter of the company, but it may not be later than three
    months after the decision on payment is made.
    (11) Joint stock companies of which statutory capital contains and a share of the public property
    transferred at the respective budget till 1 July of the following reporting year, calculated
    dividends in function of the activity results of the reporting year, on the decision of the general
    shareholders meeting and in conformity with the structure of the statutory capital. In the same
    term, the report on dividends in function of the joint stock company activity results of the
    reporting year shall be submitted to the territorial state fiscal inspectorate. In the event of failing
    of payment in the deadline the dividends afferent share of the public property in the statutory
    capital of the joint stock company, the bodies of the State Fiscal Agency shall apply the increase
    of delay, as well as the execution of obligations which were not respected in the deadline in
    accordance with the V Title of the Fiscal Code.
    (12) The decision on dividend payment by a company which corresponds one of the criteria
    envisioned in paragraph (2) of Article2 shall be published within 15 days after the decision was
    made. The decision on dividend payment by a company which do not corresponds one of the
    criteria envisioned in paragraph (2) of Article2, each shareholder shall be informed personally
    within 15 days after the decision was made, as well as may be published in the mass-media
    means pursuant general shareholders meeting decision.
    (13) Dividends which the shareholder failed to receive through his fault within three years
    following date of occurrence of the right to receive them, shall be transferred to the income of
    the company and may not be claimed by the shareholder.

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