The Russian Ministry of Economic Development has drafted a bill that would prohibit joint-stock companies from executing resolutions on the payment of dividends if, when such resolutions were adopted, the rights of holders of preferred shares - whose dividend amount is fixed in the company’s charter - were infringed.
In the new issue of EG-Yurist, Vasiliy Ermolin, Partner at Ermolina & Partners, comments on how the dividend amount for preferred shares is currently determined and what changes would follow if the bill were enacted.
"The rights of the holders of preferred shares whose dividend amount is fixed in the company’s charter … are subject to protection through judicial recovery from the company, as unjust enrichment, of the monetary amounts that were not paid to such shareholders".
The full text of the article is available via the link (subscription required).
Published in: EG-Yurist No. 43 (1392), 2025.
In the new issue of EG-Yurist, Vasiliy Ermolin, Partner at Ermolina & Partners, comments on how the dividend amount for preferred shares is currently determined and what changes would follow if the bill were enacted.
"The rights of the holders of preferred shares whose dividend amount is fixed in the company’s charter … are subject to protection through judicial recovery from the company, as unjust enrichment, of the monetary amounts that were not paid to such shareholders".
The full text of the article is available via the link (subscription required).
Published in: EG-Yurist No. 43 (1392), 2025.