Lawyers Divide over Lawfulness of State Benefits for Collecting Dividends from Economic Associations with State Share
INTERFAX-UKRAINE Kyiv. October 22
Possible benefits of the State as for collecting dividends from economic associations having the state share on the one hand can be a breach other shareholders’ rights with consequent result in their judicial assertion, but on the other hand they comply with a set of provisions of the Constitution of Ukraine, such an opinion was provided by lawyers interviewed by the Interfax-Ukraine.
These were their comments on draft law of the Ministry of Finance of Ukraine, binding for the economic companies with the state share to pay dividends to the budget without consent of all shareholders.
‘Due to enactment of above draft law, a lot of disputes can arise as for its validity, or those concerning procedure of paying dividends’, said Taras Rozputenko the attorney at law of the Volkov Koziakov and Partners Law Firm.
As he explained to the agency, for instance, constitutional documents of an enterprise may provide the procedure of paying dividends (on preferred or ordinary shares), which may appear to be controversial to introduced amendments, and at the same time comply with regulations of other laws.
According to the attorney’s opinion, introduced amendments actually restrict the rights of shareholders for disposition of results of economic activity of an enterprise, in particular, the right of shareholders to establish the procedure of paying dividends will come up against the economic companies’ responsibility of dividends payment to the State.