Dividend

Dividends exist when a BV or NV distributes profits to its shareholders.
By law, shareholders share in the profit in proportion to what they have paid on their shares. This can be deviated from in the articles of association. For example, by sharing in proportion to the nominal value of each share. But also because no profit, a fixed percentage or a fixed amount is paid on certain shares.

In principle, the general meeting decides on making distributions on shares. Such a resolution is always subject to the approval of the company's board.

The board must withhold its approval if it considers, based on the distribution test, that the company cannot continue to pay its due debts as a result of the distribution.

For more information on dividends and whether or not to pay them, please contact us. We will be happy to advise you.