The strange risk for the Turkish companies which accrued dividend but haven’t paid longtime

According to the law numbered 2308, if the dividend is not received within five years by the shareholders, the dividend should be transferred to the public treasury in three months. If not the company should paid three times of the dividend plus interest as indemnity.

We’ve never meet before this kind of situation, because the law is still in effect, we suggest you to take action.

 

That’s why we can offer you some solutions about this situation

 

The dividend can be:

 

1- paid to the shareholders before lapse of time

2- added to the paid in capital via capital increasing

3- kept as “extraordinary reserve” in the equity accounts with the General Assembly Decision

4- deducted from the previous years losses as “the loss recover fund”  with the General Assembly Decision

 

You can choose one of these options which are suitable for your company.

 

P.S. Companies which haven’t accrued dividend or keeping the profit in their retained earnings accounts have no risk.