The VZMD adamantly opposes the call by the Slovenian Directors’ Association (ZNS) to directors and managers of companies, not to distribute profit or to distribute it partially. In this regard, the VZMD has made a point that the decision about the dividend payout should be the concern of the owners or shareholders respectively, and due to a fact that the dividends are to be paid out from (portion) of the profit earned by the companies in previous years, and not in the year to date.
Furthermore, the VZMD took a cautious stance regarding the call by the Insurance Supervision Agency (AZN) directed to all the insurance companies, reinsurance undertakings and pension companies to temporarily defer the dividend payout in light of uncertain circumstances related to the COVID 19 epidemic. In this respect, the VZMD has pointed to the fact that dividends for many of shareholders as well as pension funds in the Republic of Slovenia make for a significant source of income and resources, and simultaneously, it is predominantly the minority shareholders that are compelled to cover all the more higher and disproportionate costs related to possession of securities.
"Given the fact that, along with this year's dividends, the balance sheet profits from 2019 are to be paid out, and were record high in many cases, the VZMD sees no reasons for any deferment, retention or cutting of dividends. On the contrary, the higher dividends will beneficially impact citizens-shareholders affected by the ramifications of the epidemic, and also the Republic of Slovenia itself, which might levy more taxes – based on the new higher rate of 27.5% as opposed to 25% until recently – and at the same time, the state would receive substantial dividends itself as a shareholder in multiple thriving companies," was how the VZMD President, Mr. Verbič, additionally reinforced his forthright views.
In addition the VZMD calls on the corporations to take advantage of the current state of affairs to brace for holding general meetings and voting using electronic communications media, that is, remotely, because it is only the shareholder general meetings that may reach critical decisions, which are increasingly important in these times.
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