Denmark: No aid for companies which pay out dividends or are reg. in tax havens

Re:Denmark: No aid for companies which pay out dividends or ... by smnrchrds on Monday April 20, 2020 @11:17AM (#22924586)

I think the "in tax havens" part applies to "pay out dividends" as well. Perhaps someone who speaks Danish can refer to the official sources and confirm?

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Re:Denmark: No aid for companies which pay out dividends or ... by Saaster on Monday April 20, 2020 @11:22AM (#22924648)

Firms applying for Danish state aid must promise not to pay dividends or make share buy-backs in 2020 and 2021. Companies would be allowed to pay dividends again if they pay back the aid.

This makes perfect sense, otherwise it's a textbook case of socializing the losses and privatizing the profit. Paying dividends (and stock buybacks) is a trade-off that companies make, that makes the company less resilient. Risk/reward needs to work in both ways, both in terms of gains as well as losses.

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Re:Denmark: No aid for companies which pay out dividends or ... by bigfudge on Monday April 20, 2020 @12:09PM (#22925194)

I personally don't see why it's such a limited time frame.

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Re:Denmark: No aid for companies which pay out dividends or ... by ed312 on Monday April 20, 2020 @01:45PM (#22926338)

Agreed - repayment of the loan/bailout should be the contingency. Your business has wild post-COVID success? Great! Pay back your bailout and start issuing dividends! No moral hazard in returning capital in a successful business.

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Re:Denmark: No aid for companies which pay out dividends or ... by smnrchrds on Monday April 20, 2020 @11:32AM (#22924773)

Thank you for the explanation.

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Re:Denmark: No aid for companies which pay out dividends or ... by rvnx on Monday April 20, 2020 @11:28AM (#22924725)

Can't say it better.

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