dividendiõiguse

Dividendiõigus refers to the legal framework governing the distribution of profits by a company to its shareholders. In Estonia, this area of law is primarily regulated by the Estonian Companies Act. Dividends are typically paid out of the company's distributable profits, which are profits that remain after all expenses, taxes, and provisions for reserves have been accounted for.

The decision to pay dividends is usually made by the company's supervisory board and approved by the general meeting of shareholders. Shareholders are entitled to dividends in proportion to their shareholding. The timing and amount of dividend payments are at the discretion of the company, although certain restrictions may apply, such as ensuring the company's solvency is not jeopardized.

Foreign shareholders receiving dividends from Estonian companies are generally subject to withholding tax. The rate of this withholding tax can vary depending on tax treaties between Estonia and the shareholder's country of residence. Companies are required to withhold and remit this tax to the Estonian Tax and Customs Board.

Dividendiõigus also encompasses rules regarding the announcement of dividend payments and the procedures for distributing them to shareholders. It is important for companies to adhere to these legal requirements to avoid penalties and ensure fair treatment of all shareholders. The specific provisions concerning dividends are detailed within the Estonian Companies Act and related regulations.