a)
Dividend and reserves
Dividend may only be distributed from the net profit for the period and reserves appropriated in this respect. Dividend distribution may only be made if statutory reserves and other reserves according to the law and the articles of association are appropriated.
Dividend is calculated in accordance with the ratio of capital share to nominal value unless otherwise stated in the articles of association.
In the following situations the general assembly may decide to appropriate reserves which are not in accordance with law or the articles of association:
- In the case of compensating losses,
- If there is a need of investment for the development of the partnership, if appropriation of such reserves are justified as the benefit of all partners and if these issues have been explicitly stated in the articles of association.
b)
Interest prohibition and
preparatory period interest
Interest cannot be accrued for the capital and additional payments. It may be possible to pay interest for a preparatory period as stipulated by the articles of association.
c)
Financial statements and
reserves
The provisions of joint stock companies regarding financial statements and reserves also apply to the LLC.
d)
Refund of dividend unfairly
received
Partner and manager are liable to refund dividend that was unfairly received. If the partner and manager have acted in good faith, the liability to refund the dividend that has been unfairly received may not exceed the amount that is necessary to settle the claims of creditors.
The partnership's right to refund the dividend which has been unfairly received becomes statute barred after five years as of the date on which the money was received. This period is two years if the partner and the manager have acted in good-faith.
