Affect of moratorium on bankruptcy on dividends payment
The moratorium on bankruptcy, caused by the difficult situation in the economy, provides for another unpleasant consequence – a ban on the payment of dividends. Now, in order to pay profits to shareholders, companies are required to undergo a special paid registration, as well as to give up the opportunity to avoid liability for breach of obligations.
"Subsequently, payments for the transfer of dividends during the moratorium period may be challenged in bankruptcy cases," said Karina Sidorova, Head of Crisis Management and Bankruptcy Practice at the Duvernoix Legal law firm. “However, in the absence of outstanding creditors' claims, the payment of dividends does not violate their rights. In this case, shareholders or members who disagree with the payment of dividends during the moratorium period may file a lawsuit against the head for recovery of losses caused to the company (“NP” note: there may be a conflict between shareholders, for example, if the majority decides to pay dividends, and the minority shareholders consider it a violation of the company's interests.)".