In accordance to the New Company Law, Law no 40 of 2008, Companies through its Directors are required to compile and submit for approval and annual work plan that shall be complied and agreed prior to the new financial year. If a new work plan is not completed, the plan from the previous year will apply. The annual report shall be completed and approved no later that 6 months after the close of the relevant financial year. The annual report must be made available as of the date the General Meeting of Shareholders is being called. All annual report must be audited by an accredited public accountant. The New Company Law also provides that a 20% threshold of profit income shall be allocated to an approved reserve fund.

Only companies that have a positive balance sheet may allocate dividends. In essence, a dividend may be paid on the condition that it is to be repaid to the company if the company's year-end results do not justify the interim dividend. Moreover, the Board of Directors (BOD) or Board of Commissioner (BOC) is the one that shall be held responsible for any losses sustained by the company as a result of any interim dividend payout.

Source: www.hukumonline.com, ILB 17/9/2007: Annual Reports, Dividends, General Meetings of Shareholders, and the Obligations of Directors and Commissioners