Abstract

The third part of the article analyses the conditions to be taken into consideration by the company's management board when it takes the decision to pay a dividend advance to shareholders pursuant to the provisions of Art. 194 of the Commercial Companies Code. In accordance with the article a company may pay a dividend advance if it „has sufficient funds for such payment”. Therefore, the key issue to be resolved is proper interpretation what does the term „has sufficient funds” mean.

Given the fact that this article constitutes the last part of the discussion on the dividend advance in a limited liability company, it also contains a summary of findings made in the first two parts as well as de lege ferenda postulates concerning the regulation laid down in Art. 194 and Art. 195 of the Commercial Companies Code.