Order: Court dismissed dividend case by Administradora

On October 5, 2022, the Tenth Civil Court of First Instance rejected a lawsuit filed by Administradora de Restaurantes, S.A., which sought to extinguish dividend payments owed to Lisa, S.A. The plaintiff argued that dividends approved between 2001 and 2011 had expired after five years under civil-law prescription. However, the court ruled that Guatemalan commercial law does not provide for a prescriptive period for declared dividends and that applying civil-law rules would violate principles of equity and shareholder protection.

The court emphasized that once dividends are declared by the shareholders' meeting, they become the property of the shareholder and cannot be unilaterally extinguished. It further found that Lisa had consistently sought payment and had been blocked by legal maneuvers and judicial embargoes. The judge concluded that the claim was legally baseless and that the right to receive dividends is not subject to extinguishment by inaction. No court costs were imposed, citing the complexity of the dispute.