Newsletter-21

37 COMMERCIAL LAW stated in the preamble of the CML 9 , “ The article regulates that public companies may distribute dividends in accordance with the profit dis- tribution policies determined by their general assemblies. Therefore, it is ensured that the companies act in line with their financial structures and investment plans, by not restricting them with respect to any ratio or minimum amount regarding dividends.” Joint stock companies distribute dividends equally to all shares as of the distribution date, regardless of the issuance and acquisition dates of such shares. This principle will not be applicable if there are any privileged shares with respect to dividends. Dividends may be paid in equal or different installments, provided that such payment method is resolved in the general assembly meeting wherein the dis- tribution of dividends is decided. The Dividend Communiqué also enables the company to give privileged shareholders, holders of redeemed shares, members of the board of directors, employees of the company, and persons other than shareholders a share of the profits through a provision to be included the articles of association of the company. However, dividends may not be distributed to such persons before the dividends are determined for shareholders in the articles of association and statutory reserves are allotted. If the ratio of dividends to be distributed to such persons is not determined by the articles of association, this ratio may not exceed one-fourth of the dividends distributed to the shareholders, except for those arising from privileges (Dividend Communiqué m. 5/4). Regulation with respect to Companies whose Shares are not Publicly Traded The Dividend Communiqué consists of special provisions regu- lating the dividend distribution of companies whose shares are not publicly traded. The dividend distribution ratio for companies whose shares are not publicly traded may not exceed twenty percent of the net distributable profits (including donations) for that period which is determined by the Dividend Communiqué. 9 Preamble of Article 19 of the CML.