<a href='https://ads.independent.com.mt/www/delivery/ck.php?n=afef72b0&cb=80' target='_blank'><img data-src='https://ads.independent.com.mt/www/delivery/avw.php?zoneid=22&cb=80&n=afef72b0' border='0' alt='' /></a>A company pays an interim dividend to its shareholders in June. Under Maltese law, interim dividends can, in certain circumstances, be clawed back. Why Interim Dividends are differentDividends represent the most common form of distributions of a company's profits to its shareholders. The legality of an interim dividend is generally assessed by reference to the circumstances prevailing at the time of payment, rather than by reference to subsequent events. Although discussions concerning clawbacks often focus on shareholders, directors frequently face the greater legal risk.