A dividend distribution of profit

A dividend distribution of profit

A dividend distribution of profit: A legal entity is an organized formation established for a certain purpose, having own property, which independently takes responsibility based on its property, assumes rights and obligations, concludes agreements, and is entitled to be presented as complainant and defendant in court. Its purpose is to engage in business activities.

Entrepreneurial activity is considered a legitimate and not-single activity for making a profit, in an independent and organized way.

A dividend is the distribution of reward from a portion of the company’s earnings and is paid to a class of its shareholders.

Dividends are decided and managed by the company’s board of directors, though they must be approved by the shareholders through their voting rights. Dividends can be issued as cash payments, as shares of stock, or other property, though cash dividends are the most common. Along with companies, various mutual funds and exchange-traded funds (ETF) also pay dividends.

Under the legislation of Georgia by the resolution of the General Meeting of Partners and General Meeting of Shareholders, limited liability and joint-stock companies may determine the distribution of annual and interim profits in the form of dividends.

Dividends in limited liability and joint-stock companies shall be issued within the period determined in the Charter, but not later than nine months after the relevant decision with regard to the distribution of profit is taken.

We understand that the distribution of the dividend is essential for small and average businesses; therefore, we would like to offer you the wide range of packages specially designed for your business, we can help you manage your business with confidence.

For more details about the distribution of the dividend in Georgia, you may contact our Company Formation Georgia lawyers in Georgia.