Companies Law

1. Annual or interim dividends may be distributed from distributable dividends to partners or shareholders in joint-stock companies, simplified joint-stock companies, and limited liability companies. 2. If dividends are distributed to partners or shareholders in violation of paragraph (1) of this Article, the company’s creditors may demand repayment of their debts from the company, and the company may demand each partner or shareholder, including a bona fide partner or shareholder, to return any dividends he received. 3. A partner or shareholder shall not be obligated to return dividends he received pursuant to paragraph (1) of this Article, even if the company incurs losses in subsequent periods. 4. The Regulations shall determine the rules necessary for the implementation of this Article.