 | | | | | The sharing of profits amongst the members depends on their agreement to do so or not.
Unless stated otherwise in a clause of the memorandum of association or a resolution adopted by a majority of three-quarters of the votes corresponding to the companys capital, at a general meeting called for this purpose, half of the profit of the financial year available for distribution must be distributed among the members.
The share of the profits that each member is entitled to matures 30 days subsequent to the resolution to distribute profits, unless the member agrees to deferred payment. However, in exceptional company circumstances, members may request an extension of the said period for a further 60 days.
In relation to the distribution of reserves, the reserves to be shared out, totally or in part, and either independently or in conjunction with the financial year´s profits, must be expressly identified in the resolution.
Limitations
Profits for a financial year cannot be shared out when these are required to cover retained losses or form statutory reserves.
Profits from the financial year cannot be distributed amongst the members whenever start-up costs or research and development costs are not fully redeemed, except in cases where the total value of free reserves and retained earnings is at least equal to the total of said costs unredeemed.
Profits, or any other assets, cannot be shared when the company´s net value is or becomes less than the sum of the capital and non-distributable reserves.
powers of members
Resolutions of members
Rights and obligations of members
Reserves
Loss of half of the capital | | |  | |
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