Definition for : Advance dividend

Advance Dividend consists in paying a fraction of the forthcoming Dividend in advance. The decision is taken by the Board of Directors or the executive board, but does not need to be approved by the OGM. An advance Dividend offers a way of smoothing cash inflows to Shareholders and cash outflows from the company. In the United States, Canada and the United Kingdom, advance Dividends are common. Advance Dividends are also called intra-annual Dividends.

(See Chapter 38 Share issues of the Vernimmen)

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