Document background
A Board Resolution Dividend Distribution is a crucial corporate governance document required under UAE law whenever a company's board of directors decides to distribute profits to shareholders. This resolution is mandated by UAE Federal Law No. 32 of 2021 and must demonstrate compliance with various regulatory requirements, including adequate profit availability, solvency considerations, and proper corporate authorization. The document is typically prepared following the approval of financial statements and determination of distributable profits, requiring input from financial, legal, and corporate governance stakeholders. It serves multiple purposes: documenting the board's decision-making process, providing legal protection for directors, enabling regulatory compliance, and authorizing the practical implementation of dividend payments. For UAE companies, particularly those with foreign ownership or those operating in free zones, the resolution must also address specific regulatory requirements and ownership considerations.
