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Interim dividend distribution

An interim dividend may be distributed by the board of directors in the current year on condition that the articles of association (bylaws) empower them to do so.

For an S.A.

Legal provision (Article 461-3 LCC): Interim dividends may be distributed, at any time, under the following conditions:

  • A specific clause needs to be foreseen in the articles of association
  • Preparation of interim accounts (showing that the funds available for the distribution are sufficient)
  • The decision of the board of directors or executive board, as appropriate, to distribute an interim dividend may not be taken more than two months after the date at which the interim accounts were drawn up
  • In their report to the board of directors or executive board, as appropriate, the commissaires or the réviseur d’entreprises (statutory auditor) shall verify whether the above conditions have been satisfied
  • Where the interim dividend exceeds the amount of the dividend subsequently approved by the general meeting of shareholders, it shall be considered, in the amount of the excess, as an interim payment on the next dividend.
  • The amount to be distributed may not exceed the following:

Total profits earned (since end of last financial year for which annual accounts have been approved) 

+ Any profits carried forward and sums drawn from reserves available (for this purpose) 

- Losses carried forward/any sums to be transferred to reserves (pursuant to the requirements of the law or the articles of association) 

For S.àr.l.

Legal provision (Article 710-25 of LCC): Interim dividends may be distributed, at any time, under the following conditions:

  • A specific clause needs to be foreseen in the articles of association
  • Preparation of interim accounts (showing that the funds available for the distribution are sufficient)
  • The decision of the managers to distribute an interim dividend may not be taken more than two months after the date at which the interim accounts were drawn up
  • In their report to the managers, as appropriate, the commissaire or the réviseur d’entreprises (statutory auditor), if any, shall verify whether the above conditions have been satisfied
  • Where the interim dividend exceeds the amount of the dividend subsequently approved by the members, it shall be considered, in the amount of the excess, as an interim payment on the next dividend.
  • The amount to be distributed may not exceed the following:

Total profits earned (since end of last financial year for which annual accounts have been approved)

+ Any profits carried forward and sums drawn from reserves available (for this purpose)

- Losses carried forward/any sums to be transferred to reserves (pursuant to the requirements of the law or the articles of association)

Contacts

Christiane Chadoeuf

Christiane Chadoeuf

Partner | Audit & Assurance Business Leader

Christiane is the Audit & Assurance Business Leader at Deloitte Luxembourg. Originally from France, Christiane started her career at the Deloitte Paris office in 1997, before she broadened her skillse... More

Martin Flaunet

Martin Flaunet

Partner | IFRS Leader

Martin is a partner within the audit department and has more than 15 years of professional experience as an auditor and regulatory consultant. He has focused on serving banking clients and is responsi... More

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