Trade Ministry proposes companies with state stake pay 80% of profit in dividends for 2014
Companies in which the state owns or controls a stake should pay 80% of profit in dividends for 2014, according to a draft resolution of the Cabinet of Ministers, posted on the website of the Economic Development and Trade Ministry.
The draft resolution states that a basic norm of paying 80% of profit for companies should be established, the charter capital of which includes state corporate rights. This includes economic entities, 50% or more shares of which are in the charter capital of business entities, the state stake in which amounts to 100%, including subsidiaries.
The draft states that the ministry will provide explanations for the use of basic norms, and should provide dividend payments to the national budget. If companies fail to pay dividends by July 1, 2015, to the heads of such enterprises will have their contracts terminated.
The State Fiscal Service, jointly with the State Financial Inspectorate, should monitor the completeness and timeliness of dividend payments to the state, according to the draft.