Can a shareholder renounce to a dividend declared by a business corporation? | ScriptaLegal
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Frequently asked questions > Company > Business Corporation > Can a shareholder renounce to a dividend declared by a business corporation?

Can a shareholder renounce to a dividend declared by a business corporation?

There are several possible types of renunciation for a shareholder with respect to a dividend declared by the business corporation.

Indeed, even if a business corporation declared a dividend for a particular class, a shareholder holding shares of that class can renounce to receive the dividend payable to him, in whole or in part, and that, only for the declaration of dividend concerned by his renunciation. The exercise will have to be repeated at each declaration of dividends.

Also, a shareholder holding shares of a class having a rank of priority over another class for which a business corporation declared a dividend, can renounce to receive in priority the dividend to which he would have been entitled and accept that the dividend declared is paid to a class of shares of a lower rank to his and that, only for the declaration of dividend concerned by his renunciation.

The shareholder could also renounce to the dividend rate provided for his shares of the share capital of the business corporation.

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