Abstract

The second part of the article further analyses the maximum amount of the dividend advance to be paid to the shareholders of a limited liability company pursuant to the 2nd sentence Art. 195 § 1 sentence 2 of the Commercial Companies Code. This amount shall not exceed half of the profits earned from the end of the previous financial year, increased by the capital reserves established from the profits which the management board is entitled to administer in order to pay the advance, and reduced by the value of uncovered losses and own shares. All abovementioned legal terms (profits, capital reserves, uncovered losses, value of shares) are based on accounting concepts. Despite the above, a comparison of the meaning of those terms as used in the Commercial Companies Code and the Accounting Act may cause a lot of interpretational problems. The aim of this article is to provide solutions for the abovementioned problems.