Ordinary dividend

The calculation of the maximum dividend is a calculation that is made before the board's decision.

The Companies Act sets limits on what can be distributed as dividends and group contributions, cf. sections 8-1 and 8-5.

Under Allocationsand the tab Ordinary, section Deductions/adjustments, you can enter any amount that will be deducted/adjusted in the calculation model. All fields except Other disp. after the balance sheet date within the maximum dividend shall be entered with a positive amount. The signs in front of the text on the line indicate the consequence for the total Deductions/adjustments.

In the field Custom allocation, the actual amount to be allocated as a dividend, is entered.

If it is appropriate to allocate the maximum dividend, the option Maximum dividend is selected, and the system calculates this amount based on the assumptions that may exist on the above fields under Deductions/adjustments.

If there is no allocation for ordinary dividend, the option No allocation is selected.

The model shows a maximum dividend basis, but it must be specified that the company can only distribute dividends as far as after the distribution it has a sound equity and liquidity, cf. section 8-1, 4th ledd and 3-4 of the Companies Act.

- Own shares at face value

According to the wording of Section 8-1, second paragraph of the Companies Act, deductions shall be made for the nominal value of own shares acquired before the balance sheet date.

- Credit and pledge of assets to shareholders

There shall be deductions for credit and pledge of assets to shareholders.

+ Credit and pledge of assets settled before decision date

No deductions shall be made for credit and pledge of assets that has been repaid or settled before the decision date. An amount in this field will therefore reduce the amount registered in the field for Credit and pledge of assets to shareholders.

+ Credit to shareholders which is netting if dividends

There shall be no deductions for credit and pledge of assets that will be settled upon settlement in the dividend. An amount in this field will therefore reduce the amount registered in the field for Credit and pledge of assets to shareholders.

+/- Other disp. after the balance sheet date within the maximum dividend

A deduction shall be made for other disposals after the balance sheet date which, according to the law, must be within the limits of the funds that the company may use for the distribution of dividends. Examples of this may be capital changes that have taken place after the balance sheet date. Section 8-1 of the Companies Act, 1st paragraph, last sentence states that "it is the registered share capital at the time of decision to be taken into account".

This means that a capital increase after the balance sheet date registered at the decision date will reduce the dividend basis and consequently increase the total deductions / adjustments. In such a situation, the amount corresponding to the capital increase for the share capital is added as a positive amount.

In the opposite, a capital reduction after the balance sheet date, which is registered at the time of decision, will increase the dividend basis. This capital reduction is then registered on the line with a negative amount.