How do you distribute an extraordinary dividend in an ApS in 2023?

An extraordinary dividend for a Danish ApS is distributed during the year and not in connection with the approval of the annual report. To distribute a dividend, you must call a meeting for the shareholders and the management. The first time a dividend can be distributed is after the first fiscal year ends. And it is a requirement that there is more equity capital than share capital. We call the amount of profit that can be distributed as dividends for free reserves. If the equity capital is lower than the original share capital, you cannot distribute a dividend. This can be the case if the company has had a deficit. A meeting where the shareholders and the management meet is called a general meeting. The general meeting where the annual report is approved is called the annual general meeting or, in short, “AGM”. A general meeting where an extraordinary dividend is distributed is called an extraordinary general meeting or, in short, “EGM”. In this video, we explain the most important aspects of the extraordinary dividend. You can read more on our blog: www.daniaaccou...