Under paragraph 2 of Article 31 of the Law of Ukraine “On limited and additional liability companies” an annual meeting of the shareholders of a LLC shall be held within 6 (six) months following the report year. Otherwise stated, the LLC is to hold annually a general meeting of shareholders not later than the 30th of June.
The law provides herewith that the compulsory issues constituting the agenda of such a meeting shall be the distribution of the company’s profits, the dividends payment and their amount.
Thus, as a matter of law, the decision on the payment of dividends must be made until the 30th of June annually.
Such provision of the legislation enables the members to demand the convening and holding of the general meeting of the shareholders in order to resolve the issue of dividends payment.
Nevertheless, the legislation does not contain provisions on the liability for failure to hold the general meeting of the LLC shareholders on time, however, these time limits better be kept in case of dividends payment abroad, when the respective minutes are considered by banks.
A sample of minutes of the general meeting of the LLC shareholders can be found here.
Regarding the issues of holding the general meeting of the LLC members, dividends payment, challenging the shareholders’ decision you may contact the specialists of the law firm “Zilver”: +380980027825 or e-mail: email@example.com.
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