|
ASSISTANCE TO INVESTORS IN PROTECTION OF THEIR RIGHTS FOR ANNOUNCED DIVIDENDS
The objective of any investment is generation of return. The wish of investors to generate return on investments into Russian shares is not an exception.
The Federal legislation provides three basic rights to a shareholders:
- The right for a share in the profit of a joint stock company in the form of dividends;
- The right to participate in management of the joint stock company;
- The right for a share of assets remaining after the liquidation.
In general, the problem of non-payment or incomplete payment of dividends by joint stock companies is rather acute. Payment (or non-payment) of dividends defines the level of investment attractiveness of shares of a specific issuer, because every investor buying shares counts on generating return in the form of price growth and dividends. In this regard it is very important to change the attitude of management towards payment of dividends.
The following main types of violations related to payment of dividends were identified:
- non-payment of announced dividends by issuers, violation of terms and procedures of dividend payment;
- non-payment or delayed payment of dividends by the issuer's paying agents;
- incorrect calculation of net profit and the size of dividends by issuers;
- payment of dividends on preferred shares out of special reserves of the issuer in order to prevent owners of preferred shares from executing their right to participate in GMs and vote on all items on the agenda.
In connection with multiple complaints of shareholders about violations in the area of payment of dividends, and for the purpose of construction of civilized corporate governance principles to ensure the right of shareholders to participate in the company's profit the Dividends Project was developed and started. Active work in the following areas is done within the framework of the Project:
- summary of court practice related to protection of shareholders' rights for announced dividends;
- creation and regular update of the database of issuers committing single or regular violations of their obligations related to payment of announced dividends;
- preparation of draft changes and amendments to the Federal Joint Stock Company Law regarding the procedure, terms and other issues of dividend payment;
- development of possible changes and amendments to Charters of issuers regarding the procedure, terms and other issues of dividend payment to ensure protection of shareholders' rights for dividends.
The Hot Line is open within the framework of the Project (tel.: (095) 787-2442; e-mail: dividend@corp-gov.ru). Any interested shareholder in a Russian company may address here for consultations and assistance in the area of dividend payment. Besides, the Hot Line is used to gather information about violations of shareholders' rights for dividends.
Issuers, with respect to which complaints were received from shareholders
Documents, expert opinions
If you have any suggestions regarding this Project, you may submit them by E-Mail.
| 
