현물배당제도에 관한 쟁점사항의 검토

Dividends-in-kind was introduced in amendments of the Commercial Code of Korea in 2011. The introduction of dividends-in-kind was in order to satisfy needs of business for diversification of dividends and shareholders’ expectation for dividends. Along with the introduction of dividends-in-kind, whether the right to ask for cash dividends is automatically granted to shareholders in case where paying dividends-in-kind is resolved by a general meeting of shareholders or by a board of directors under the current commercial Code of Korea or not is being disputed, and the pros and cons of validity of the Article 462-4 in the Commercial Code are divided. It is problematic that there are no regulations applied as the standards of valuating properties and for the treatments of dividends-in-kind illegally paid to shareholders, so dividends- in-kind is not used actually in the world of business. The purpose of this study is to review legal issues mentioned above around dividends-in-kind. The first subject is on whether the right to ask for cash dividends is automatically granted to shareholders in case where paying dividends-in-kind is resolved by a general meeting of shareholders or by a board of directors, and on the pros and cons of validity of the Article 462-4 in the Commercial Code. The right for shareholders to ask for cash dividends shall be provided in the regulations related to dividends-in-kind, and the Article 462-4 in the Commercial Code is valid, therefore the board of directors is able to make a decision for dividends-in-kind. The second issue is on whether treasury stock is able to be paid as the object of dividends-in-kind to shareholders, and on which criteria shall be applied to valuate properties. The treasury stock is not able to be paid as the object of dividends-in-kind. The properties paid as the object of dividends-in-kind shall be valuated by market price. When considering no regulations applied for the treatments of dividends- in-kind illegally paid to shareholders, it is necessary to introduce newly a provision in terms of the treatments of dividends-in-kind illegally paid to shareholders into the Commercial Code. The last theme is on rebuilding or restructuring companies by dividends- in-kind or by spin-off. The two systems are separately operated because of differences in procedures and liabilities between two systems. Dividends-in-kind should be operated to keep a balance between principle of private autonomy and protection of shareholders' interests.