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Transforming Georgia’s regulations on Shareholders’ right to interim dividend Confronting the European Company Law

Transforming Georgia’s regulations on Shareholders’ right to interim dividend Confronting the... AbstractThe article provides a critical legal analysis of Georgia’s regulations on the interim dividend payment and highlights the necessity of proper amendments to comply with European company law. Since having an EU-Georgia Association Agreement signed, the dynamic process of Europeanization has put various legislative changes on the agenda, which also regard shareholders’ proprietary rights. This article briefly gives a novel insight into the distribution of interim dividends from a comparative point of view. It suggests the possibly scrutinized coverage of the legal preconditions along with liability consequences for the interim dividend declaration from the perspective of both shareholders and joint stock companies in Georgia. The article emphasizes the structure of the corporation, which naturally bedrocks the potential conflict of interests between the shareholders and creditors. The topic also endorses questioning Georgia’s rules on capital maintenance in relation to the interim dividend distribution. Hence, the study reveals prevailing regulatory lapses and makes pertinent recommendations on the alignment of the financial interests of those mentioned. Last but not least, the article exposes how directors on the credible basis of their fiduciary duties are assigned to divert assets of the corporation since their rationality in decision-making is expected to meet the best interests of the company. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Baltic Journal of European Studies de Gruyter

Transforming Georgia’s regulations on Shareholders’ right to interim dividend Confronting the European Company Law

Baltic Journal of European Studies , Volume 10 (2): 18 – Sep 1, 2020

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References (41)

Publisher
de Gruyter
Copyright
© 2020 Ana Tokhadze, published by Sciendo
ISSN
2228-0596
eISSN
2674-4619
DOI
10.1515/bjes-2020-0015
Publisher site
See Article on Publisher Site

Abstract

AbstractThe article provides a critical legal analysis of Georgia’s regulations on the interim dividend payment and highlights the necessity of proper amendments to comply with European company law. Since having an EU-Georgia Association Agreement signed, the dynamic process of Europeanization has put various legislative changes on the agenda, which also regard shareholders’ proprietary rights. This article briefly gives a novel insight into the distribution of interim dividends from a comparative point of view. It suggests the possibly scrutinized coverage of the legal preconditions along with liability consequences for the interim dividend declaration from the perspective of both shareholders and joint stock companies in Georgia. The article emphasizes the structure of the corporation, which naturally bedrocks the potential conflict of interests between the shareholders and creditors. The topic also endorses questioning Georgia’s rules on capital maintenance in relation to the interim dividend distribution. Hence, the study reveals prevailing regulatory lapses and makes pertinent recommendations on the alignment of the financial interests of those mentioned. Last but not least, the article exposes how directors on the credible basis of their fiduciary duties are assigned to divert assets of the corporation since their rationality in decision-making is expected to meet the best interests of the company.

Journal

Baltic Journal of European Studiesde Gruyter

Published: Sep 1, 2020

Keywords: capital maintenance rule; Georgian company law; interim dividends; shareholders’ rights

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