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Financing
The exclusion of a shareholder from the payment of dividends must be based on a legal basis
Publié le 13 mars 2025 - Directorate for Legal and Administrative Information (Prime Minister)
It is not possible to remove a shareholder from the dividend payment without a legal basis. The Court of Cassation said so in a February 12, 2025, ruling published in the bulletin.
One business sues another business who has refused to pay her dividend on the shares she disposes of.
The Court of Appeal dismisses the motion. In its view, there is no legal basis (textual or case-law) for dividend income for holders of new shares (different from ordinary shares). Thus, the defendant business was entitled to refuse to pay a dividend on such shares. The applicant business is appealing on a point of law.
The Court of Cassation quashes and quashes the appeal decision. In its view, the absence of a textual or case-law provision cannot prevent a shareholder from benefiting from his right to a dividend (legally decided by a general meeting).