Dividends can be paid immediately after the date the same area approved by the competent corporate body.
No, from a corporate law perspective, dividends can be paid as soon as the respective resolution is passed, as long as the company has the yearly profits or free reserves, as well as the cash funds, for such payment.
This resolution can be approved in the annual mandatory general shareholders meeting hold to approve the respective financial statements and the application of the yearly profits (within the first 3 months after each year-end), or any time in the course of the fiscal year if free reserves for payment of the dividends are available.
Interim dividends, based on a partial financial statement showing interim profits, are also possible, except in the case of certain regulated companies, such as banks and others. No mandatory auditor involvement is required for this dividend distribution
There are no special requirements in respect to the accounts required to support the payment of dividends. In terms of accounting and generally speaking, payment of dividends is credited against yearly profits, retained earnings or free reserves, in accordance with Peru GAAP.
For interim dividends, a partial financial statement showing interim profits is required.
The accounts required in connection with dividends generally do not need to be auided.
Yes there are restrictions on the amount of dividends that can be paid. Dividends paid cannot exceed retained earnings and free reserves. In addition, dividends can only be distributed as long as total equity is not lower than the company's paid-in capital.
The general shareholders meeting may decide to form or increase voluntary reserves assigning to the same undistributed profits of the company, generally when the annual accounts are approved within three months after the year-end. This process should be immediate after the decision is approved by the shareholders.
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.
Payment in kind of dividends is possible if the shareholders individually agree or, in certain case, if this is contemplated in the by-laws.