Once the relevant financial statements have been approved, the dividend may be paid out in a matter of days.
Yes. Typically, the payment of dividends is based on the annual (or extraordinary) financial statements. The General Meeting must resolve on approval of the annual financial statements and profit distribution within 6 months of the end of the fiscal year. The dividend is then payable within 3 months of that General Meeting resolution.
However, it may be resolved to distribute an advance dividend at any time once the interim financial statements are prepared.
The payment of annual dividends is based on the annual (or extraordinary) financial statements. The payment of advance dividends is based on the interim financial statements. Audit of the annual or extraordinary financial statements is required for companies that meet the general conditions for mandatory audit.
Yes, the dividend payment must not cause the company to become insolvent. The amount may not exceed the amount of profit (loss) for the accounting period just ended, increased by the retained profits from previous years, and decreased by the accumulated losses from previous years and contributions made to the reserve fund and other funds.
Yes, it is not possible to increase reserves once the company has established a reserve fund.
The amount of the reserve fund may be increased by a decision of the General Meeting, for instance by transferring the profit from the latest fiscal year or the retained profits from the previous years to the reserve fund. The increase can be effectuated as soon as the relevant General Meeting resolution is adopted.
The amount of the reserve fund may also be increased by registered capital reduction. In such case, the registered capital reduction must be approved by a two-third majority at the General Meeting. The resolution of the General Meeting must be published twice in the Commercial Gazette with a 30-day interval. At the same time, the company shall invite all known creditors, whose receivables towards the company came into existence before the adoption of the General Meeting resolution, to submit their receivables towards the company within 90 days after the publication of the last notice. The new amount of the registered capital must then be filed with the Czech Commercial Register.
No regulatory approvals are required in connection with payment of a dividend.
No, there are no foreign exchange requirements on paying dividends to foreign parent companies.
Yes, there are no restrictions from a corporate law perspective on borrowing cash to settle a dividend, if the restrictions on the amount of dividends are followed.
Yes, dividends in kind are possible, depending on the memorandum of association of the company paying the dividend. Dividend in kind is not explicitly prohibited by law.