Interim-dividend

An interim dividend refers to a dividend distribution that a company may effect during the current financial year on the basis of interim financial data. This is distinct from a regular dividend, which is distributed only after the annual accounts have been adopted.

Such a distribution is relevant because it enables companies to allow shareholders to benefit at an earlier stage from profits realised, provided the statutory requirements of the Dutch Civil Code are satisfied, including the balance sheet test and the liquidity test.

In practice, an interim dividend often requires a resolution of the management board and, in some cases, an auditor’s certificate to ensure that the company remains able to meet its obligations after the distribution.