Do you need legal help with an extra dividend?
An extra dividend takes place at a time other than the ordinary annual general meeting. This means that shareholders can receive part of the company’s profits later in the year, after the AGM has already been held. Extra dividends are often used in Sweden when a company has a surplus it wishes to distribute without having to wait for the next annual general meeting.
Extra dividends are only applicable in Swedish limited companies and are regulated by the Swedish Companies Act.
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When is an extra dividend applicable?
To be able to decide on an extra dividend, you need to meet the following:
- The annual report must be approved
The company must have an approved balance sheet and income statement from the annual general meeting showing distributable equity. - The board must present a proposal
The board must prepare a written proposal for the dividend. This includes a statement confirming that the company can afford the dividend. - The general meeting must approve the proposal
The general meeting must make the decision on an extra dividend.
Once the company has made the decision, you need to report it immediately to the Swedish Companies Registration Office.
How we help with dividends
Legal advice
We help you understand the process and steps you need to take to ensure all legal requirements are met.
Drafting resolution documents
Our lawyers will draft the documents before you make an extra dividend, making sure they’re legally binding and comply with all formal requirements.
Support throughout the entire process
We assist you from start to finish. From preparing the documents to making sure you’re ready to file the decision with the Swedish Companies Registration Office. This way, you can feel confident that everything is handled correctly.
Get legal help today
Do you need help with any matters regarding dividends? You can always get in contact with our lawyers within just 24 hours when you need quick answers to your questions. Or you can email or call us if you need help from our lawyers to draft resolution documents for an extra dividend.
FAQ about extra dividends
Do we always need to report an extra dividend to the Swedish Companies Registration Office?
Yes, you have to report it immediately.
Does it have to be in cash?
Yes, an extra dividend under this model applies to cash dividends.
Can a company issue multiple dividends during the same fiscal year?
Yes, it is possible as long as there is distributable equity and all formal requirements are met.
