Key indicators of good governance and economic stability of the company - the amount and timeliness of payment of dividends on shares. Restrictions on the payment of dividends have their own characteristics. They are aimed at protecting against unfair management and corporate policies are, ensuring business survival and its investment attractiveness.
What are dividends
The existence and functioning of the stock market is inextricably linked to a profit per share of acquired. Dividends - a form of revenue sharing between holders of securities. Profit, which remains with the company after tax payment, It is the main source of payment of dividends.
Formation of the final amount for payments to shareholders - the company's challenge. Decision is made on the basis of accurate calculation of the balance of the interests of society and the owners of shares. objectives pursued:
- the interests of the company's development;
- assets appreciation;
- increase in market value of the shares;
- the satisfaction of the interests of shareholders.
The calculations should take into account the availability of free resources, ability to attract capital from other sources, procedure and forms of accrual of funds.
Form of payment of dividends
Dividends occurs predominantly in cash. The following types of calculations:
- cash from the till;
- bank transfer to the account holders of shares;
- postal money order;
Charter of the enterprise may be provided other ways of payment. These include payments in kind or other assets - shares, bonds and other types of goods.
Also, the charter may be restrictions on dividends, depending on the form of payment.
Types of restrictions and their features
The law sets a number of requirements for the dividend payment procedure. Charter of the enterprise and its financial management also determine its dividend policy and exercise control over its use. Depending on the source of all restrictions on the payment of dividends in the Company may be divided into several types.
The primary restriction on dividend payments prescribed by law. To protect the company's assets and the rights of its owners is forbidden to declare and pay dividends to the final formation of the authorized capital. Charge rate is also limited. They can be carried out:
- once in three months;
- once a year.
Bankrupt enterprises are not allowed to use special funds and means of profit for dividend payment. Restrictions apply in cases, when these payments can result in the insolvency of the company.
The unsatisfactory condition of assets - another reason for the prohibition of distribution of dividends to shareholders. Reducing assets below CC due to the issuance of the dividend is also prohibited.
Violation priority payments preferred securities over conventional stocks is the basis for limitation.
Claims of shareholders of the company to purchase their shares for the reasons, referred to in Article 75 of the Federal Law 208-FZ, stop paying dividends to complete foreclosure proceedings.
Restrictions on the payment of dividends in the Company supplemented the requirement of full payment share of the retired member.
To these limitations as a general rule - at the end of the circumstances, caused their introduction, payment of dividends is made in full.
Corporate and administrative constraints
Effective management of the company is impossible without the use of financial instruments. The corporate policy of dividend payment is used to stimulate high performance enterprise and as a factor of influence on its value. on payment of dividends restrictions apply, both in the form of reducing the size of payments, and in the form of their increase. decline of profitability makes it possible for shares:
- pick up the pace of growth and provide business development;
- increase the volume of reinvested earnings and accelerate the implementation of investment projects;
- to issue additional securities for investment;
- reduce tax payments (overdue for major shareholders and shareholders with high incomes).
Increasing the amount of the dividend it can be used for the purpose:
- reduce the risks of falling prices on the stock;
- preventing flipping to destabilize;
- in order to avoid a hostile takeover by another company.
Financial and economic constraints
Lifecycle JSC periods of growth and development is often replaced by a sharp deterioration in the financial situation. Restrictions on dividend payments can help in restoring the normal functioning of the company. Restrictive measures are effective in such cases,:
- development of new high-risk;
- decrease in liquidity of the enterprise and lack of working capital;
- availability of loans, conditions which restricted the amount of the dividend payment;
- the high cost of credit resources in the financial market;
- unavailability of sources of external financing or lending;
- high levels of indebtedness, comparable in size to the current share capital or higher than the;
- reducing the profit or its absence for a long time.
The main objective of the policy of the company in respect of dividends - to find the optimal ratio between the share of profit to capitalization and consumption. Sometimes the right not to make payment or to postpone them, and the funds spent on reinvestment.
Reasonable corporate policy of dividend payment restriction allows you to use this tool to meet the needs of its shareholders.