Managing dividend in cash
DividendWhen a general meeting register of shareholders is ordered via our Internet based services, a proposed dividend should be specified in the order. At the general meeting a decision is taken as to whether a dividend to the shareholders is to be paid. Following the meeting’s approval of the dividend, the company must register a definite order via our Internet based service.
At the request of the company, we send the dividend to those entitled, i.e those entered in the register of shareholders on record day. A decision is also made at the general meeting of shareholders as to which day is to be the record date for dividend payment. According to market practice it is normal for the record date for dividend to occur three banking days after the general meeting.
Payment of dividend
Three banking days after the record day for the dividend, we send the payment amount to the recipient, if the payment is in Swedish kronor (SEK). If the dividend is to be paid in any other currency than Swedish kronor, a special agreement must be made with Euroclear Sweden. At the moment we can only handle payments in Swedish kronor and euro (EUR).
Withholding of tax
We automatically withhold 30% preliminary tax on dividend to private individuals resident in Sweden and to the estate of a deceased, and reports this to the tax authorities. We also withhold coupon tax automatically on dividends to shareholders that are not liable to tax in Sweden. Coupon tax amounts to 30% but can be reduced if Sweden and the country of residence of the person entitled to dividend have signed a double taxation agreement. This also applies to shareholders in a private company.
If the shares are undergoing a pre-emption review on the record day, the dividend is paid to the person acquiring the shares.
