represent a proportion of the company’s earnings
which are distributed to the shareholders
in accordance with the decisions of the company’s board
can be provided to the company’s founders
and other forms of assets belonging to the company. Our team of Irish lawyers
can assist investors with more information on the legal aspects concerning the distribution of dividends in Ireland
The distribution of dividends in Ireland
As a general rule, a part of the company’s earnings are kept in the company in form of dividends, which are then distributed, following specific regulations, to the shareholders.
The issuance of dividends
is established in accordance with the wishes of the company’s directors
, but only if the company’s statutory documents
provide regulations in this sense. Companies may declare dividends
if the memorandum or the articles of association
provide specific provisions, on which our team of lawyers in Ireland
can offer more details.
A company in Ireland
can issue interim dividends
and final dividends
. The value of the dividend
is established by the company’s directors
and, further on, the decision must be approved by the members of the board.
When can dividends be distributed in Ireland?
It is important to know that companies in Ireland
can distribute dividends
only in the situation in which the business incurs financial profits. They are calculated taking into account the net profits of the company in a financial year
Foreign investors should know that not all shareholders
are entitled to receiving dividends
in a company in Ireland
. However, those who can receive payments in the form of dividends
may be entitled to such payments only after the dividend
has been declared.
In the situation in which an entitled shareholder does not receive its return on investment, he or she may take legal action against the company’s representatives.