New Decree on Corporate Governance of Local Companies Passed in North Macedonia
New Decree on Corporate Governance of Local Companies Passed in North Macedonia
The Government of North Macedonia has passed a new Decree relevant for corporate governance of local companies, which:
- Cancels the suspension of convening annual shareholders meetings, introduced last week;
- Regulates the manner of profit distribution in state-owned companies; and
- Suspends dividend payments to foreign shareholders, for the duration of the state of emergency, applicable to all companies.
The restriction of private companies to pay dividends to foreign shareholders is the most restrictive measure affecting companies so far.
The companies will have to extract and denominate the sum of dividends payable to foreign shareholders and hold their payment during the state of emergency.
This restriction does not affect local shareholders or state-owned shares.
The Government of North Macedonia has passed a new Decree relevant for corporate governance of local companies, which:
- Cancels the suspension of convening annual shareholders meetings, introduced last week;
- Regulates the manner of profit distribution in state-owned companies; and
- Suspends dividend payments to foreign shareholders, for the duration of the state of emergency, applicable to all companies.
The restriction of private companies to pay dividends to foreign shareholders is the most restrictive measure affecting companies so far.
The companies will have to extract and denominate the sum of dividends payable to foreign shareholders and hold their payment during the state of emergency.
This restriction does not affect local shareholders or state-owned shares.
