Glossary of terms

Dividend is a right of a shareholder to a part of the profits of a joint stock company which is distributed among shareholders at the decision of the General Meeting for given accounting period.

The amount of dividend is determined as a pro rata share (the ratio of nominal value of shares to the shareholders aggregate par value of all shares; other rules may be for the preference shares) on that part of the net profit of the joint-stock company for the accounting period, which is approved by the General Meeting and within the law to be distributed.

We can distinguish several ways of division of companies:

• The formation of new companies - a company ceases to exist, its assets are transferred to the acquiring company and its shareholders become shareholders of the successor company (A cancelled> formation of B and C) only the cancelled company is concerned
• The division by merger - company ceases to exist and is divided, and these parts passes to other existing companies (A cancelled and divided into two or more parts> parts will be merged into existing companies B and C) merging and acquiring companies are involved
• a combination - being acquired and the acquiring company must have the same form

Divided Ltd. or JSC must have the asset valued appreciated by an expert on the date of processing the final financial statement (there must also be separately valued the assets to be transferred to individual successor companies); for the appointment, reward of the expert and the content of the report applies the same as for deposits.