Shares and non-monetary payment of interest of profit and of other resources of a joint stock company to shareholders
Shares and non-monetary payment of interest of profit and of other resources of a joint stock company to shareholders

Author(s): Radim Kříž
Subject(s): Micro-Economics, Law on Economics, Socio-Economic Research, Sociology of Law
Published by: ADJURIS – International Academic Publisher
Keywords: business share; general meeting; joint-stock company; other own resources; shares;
Summary/Abstract: This paper deals with the non-monetary share of profit and other own resources and the shares associated with them. This topic has not received much attention in legal scholarship so far. The Act No. 90/2012 Coll., on commercial companies and cooperatives (Act on Commercial Corporations) allows the payment of interest of profit and other own resources in non-monetary form to shareholders, however, the experience of the author of this paper is that in reality this possibility is not used very often. It is therefore necessary to ask whether it is justified for the professional public to overlook this issue. The possibility of paying an interest of the profit and of other own resources through non-monetary payment is not purely theoretical and may have some practical significance. In principle, the legal regulation allows two options how to proceed to use shares generating profit in kind. Both options will be discussed and evaluated. The paper aims at answering pending questions regarding the non-monetary payment of interest of profit and of other own resources. With respect to the methods used for drafting this paper, the author has mainly relied on analysis, synthesis and comparison.

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