Amendments to the Commercial Companies Code: the reimbursement of the pre-payments for the shareholders by virtue of predicted dividend
On 1st March 2019, the amendment provided for in the Act of 9 November 2018 amending certain acts in order to introduce simplifications for entrepreneurs in the tax and economic law entered into force. Based on the above-mentioned law, into the Commercial Companies Code has been added new Article 195 § 11.
In accordance with the new regulations, if in a particular financial year an advance payment towards the expected dividend was paid to shareholders and the company recorded a loss or made a profit in the amount lower than the advance payments, the shareholders return the advance payments in:
- completely – in the case of recording a loss, or
- part corresponding to the amount exceeding the profit attributable to the shareholder for a given financial year – if the profit is lower than the advance payments on account of the expected dividend.
Regarding to Joint Stock Company, the legislator has refrained from making any changes in above-mentioned area.