Is there any check and balance system for the distibution of dividends? Any system other than the company's own mechanisms? Something like taxation authorities etc?
Or if the taxes are paid properly it doesn't matter where the money has ended up?
E.g a dishonest person who controls a small scale company, pays corporate tax and also income tax on behalf of another shareholder but doesn't pay the other shareholder the proper amount he should be paid taking advantage of his naivety or lack of knowldge. Is there any chance s/he will be caught?
Distribution of dividends
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Re: Distribution of dividends
Well it all should be in the audit books?
"By the pricking of my thumbs,
Something wicked this way comes."
Something wicked this way comes."
Re: Distribution of dividends
Smaller companies do not all need to be audited.
But shareholders are entitled to see the accounts and if they say they have paid a dividend and you havent received it then you complain and if they dont pay it then you take them to collection agency or court.
T
But shareholders are entitled to see the accounts and if they say they have paid a dividend and you havent received it then you complain and if they dont pay it then you take them to collection agency or court.
T
Re: Distribution of dividends
Note if they say they have paid a dividend to you to the tax authorities it will be on your tax return. (the tax people wont check did you actually get it)
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Re: Distribution of dividends
Shareholders are not entitled to see the accounts. The relevant powers are the right to ask questions in the general meetings and the possibility of a special audit.tjawatts wrote: But shareholders are entitled to see the accounts and if they say they have paid a dividend and you havent received it then you complain and if they dont pay it then you take them to collection agency or court.
http://www.finlex.fi/fi/laki/kaannokset ... 060624.pdf
Courts.Marsh04 wrote:Is there any check and balance system for the distibution of dividends? Any system other than the company's own mechanisms? Something like taxation authorities etc?
If the other shareholder does not report it, then only a tax audit comes to mind (I assume the the company does not need to be regularly audited).Marsh04 wrote: Or if the taxes are paid properly it doesn't matter where the money has ended up?
E.g a dishonest person who controls a small scale company, pays corporate tax and also income tax on behalf of another shareholder but doesn't pay the other shareholder the proper amount he should be paid taking advantage of his naivety or lack of knowldge. Is there any chance s/he will be caught?
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Re: Distribution of dividends
Well, you need to submit your... 'end-of-year-books' to the kaupparekisteri, and have them 'end-of-year-books' for the taxman?
"By the pricking of my thumbs,
Something wicked this way comes."
Something wicked this way comes."
Re: Distribution of dividends
Well maybe I used the wrong word. The shareholders for sure are entitled to see the "Financial Statements" as they have to approve the at the AGM. And dividends are for sure shown on the financial statements and also dividends have to be approved in a shareholders meeting. And all shareholders should be invited to and be provided minutes of any shareholder meetings.
T
T
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Re: Distribution of dividends
Yes they are but so is everyone else since the financial statements are public documents.tjawatts wrote:Well maybe I used the wrong word. The shareholders for sure are entitled to see the "Financial Statements" as they have to approve the at the AGM.
Correct.tjawatts wrote: And dividends are for sure shown on the financial statements and also dividends have to be approved in a shareholders meeting. And all shareholders should be invited to and be provided minutes of any shareholder meetings.