Dividends: Payment and Restrictions

The work offered to the reader’s attention is devoted to certain issues of dividend payment: the form of payment, restrictions on payment to a certain circle of persons formed by modern situational regulation and the latest legislative changes. For more than twenty years of experience in the field of corporate law, the author has not encountered cases of payment of dividends in non-monetary funds mainly in public companies, but she had to study the issue and prepare conclusions on it for consideration of such decisions by the owners of business. Scientific papers also analyse this issue from time to time. And if everything is clear with cash dividends (for simplicity, we will call dividend payments in cash), then very controversial positions are expressed with non-monetary ones, for example, about the possibility of paying dividends with services. The relevance of the work is given by the study of the legal nature of the suspension of the shareholder’s right to a dividend. The purpose of this work is to determine the types of property that can be used for the purpose of paying dividends. In preparing the work, the author set tasks to conduct a comprehensive economic and (to a greater extent) legal study. She comes to the conclusion that it is impossible to pay dividends with own shares, that such shares have a special status of “potential” rights as an object of civil rights.