Published
07/30/2025, 17:30The Ministry of Economy and Commerce has submitted a draft law for public discussion that could significantly change the rules for paying dividends to joint-stock companies. As part of an initiative to reduce bureaucracy in the financial sector, it is proposed to allow companies to pay dividends not only from current profits, but also from retained earnings from previous years.
Under the current legislation, dividends can only be paid out of the current year's profits. The new approach will allow companies with accumulated reserves but no profits in the current period to reward shareholders from previously accumulated profits, subject to approval by the authorised body.
According to the authors of the bill, this mechanism will increase companies' financial flexibility, enhance the investment attractiveness of businesses and ensure more stable payments to shareholders, even during periods of economic turbulence.
The bill was prepared as part of the presidential decree ‘On additional measures to improve the efficiency and debureaucratisation of the civil service’ and reflects the state's overall strategy to improve the business climate and reduce administrative barriers.
Along with the proposal on dividends, the document suggests that issuers may disclose information not in the media, but on their own websites (if they have one) and on the stock exchange website. It is also proposed to transfer the certification of stock market participants to self-regulatory organisations and to reform the audit certification system based on a single commission model with the participation of independent experts.
Discussions on the draft law will continue until 13 August.
