Article 22. Dividends on the company's shares The Law on Joint-Stock Companies

Home / RLA / Article 22. Dividends on the company's shares The Law on Joint-Stock Companies

1. Dividends on the company's shares shall be paid in cash or securities of the company, provided that the decision to pay dividends was taken at the general meeting of shareholders by a simple majority of the company's voting shares, with the exception of dividends on preferred shares.

Payment of dividends by securities on preferred shares of the company is not allowed.

Payment of dividends on the company's shares by its securities is allowed only on condition that such payment is made by the company's declared shares and (or) bonds issued by it with the written consent of the shareholder.

The list of shareholders entitled to receive dividends must be drawn up on the date preceding the date of commencement of payment of dividends.

The alienation of shares with unpaid dividends is carried out with the right to receive them by the new owner of the share, unless otherwise provided by this Law and (or) the share alienation agreement.

2. The frequency of payment of dividends on the company's shares is determined by the company's articles of association and/or the share issue prospectus.

3. Payment of dividends on the company's shares may be made through a payment agent. Payment for the services of the payment agent is made at the expense of the company.

4. Dividends are not accrued or paid on shares that have not been placed or have been repurchased by the company itself, as well as if the court or the general meeting of shareholders of the company has decided to liquidate it.

5. Accrual of dividends on common and preferred shares of the company is not allowed.:

1) if the amount of the company's own capital is negative or if the amount of the company's own capital becomes negative as a result of the accrual of dividends on its shares;

2) if the company meets the criteria of insolvency or insolvency in accordance with the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy, or these criteria will appear in the company as a result of accrual of dividends on its shares;

2-1) in cases stipulated by the laws of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", "On Insurance Activities" and "On the Securities Market";

3) (deleted - No. 72 dated 8.07.2005)

6. A shareholder has the right to demand payment of unpaid dividends regardless of the period of formation of the company's debt, except in cases when the dividend has not been accrued on the grounds of paragraph 5 of this Article.

In case of non-payment of dividends within the time period established for their payment, the shareholder is paid the principal amount of dividends and a penalty calculated based on the base rate of the National Bank of the Republic of Kazakhstan on the day of fulfillment of the monetary obligation or its corresponding part.

7. Non-profit organizations established in the organizational and legal form of a joint-stock company do not accrue or pay dividends on their shares.

The Law of the Republic of Kazakhstan dated May 13, 2003 No. 415.

This Law defines the legal status, procedure for the establishment, operation, reorganization and liquidation of a joint-stock company; the rights and obligations of shareholders, as well as measures to protect their rights and interests; the competence, procedure for the formation and functioning of the bodies of a joint-stock company; the powers, procedure for the election and responsibility of its officials.

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Republic of Kazakhstan

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