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European JSCs (inc. equivalent) have a codified requirement of returning shareholder dividend at least once in 5 years. Is there a similar codified law in the U
by anticensor 8y ago
European JSCs (inc. equivalent) have a codified requirement of returning shareholder dividend at least once in 5 years. Is there a similar codified law in the US requiring public companies to return profit every quarter?
- torstenvl 8y agoNo, not in any state I've practiced in. I suspect there is no such legal requirement in any U.S. jurisdiction. However, shareholders and their boards expect growth. Additionally, note the distinction between profit and growth. For a long time, Amazon grew a lot and shareholders saw returns in terms of stock price, but the company itself made little to no profit.