The process of recommending and declaring a dividend is largely governed by
a company’s articles of association. Companies with private company model
articles of association where no amendments or modifications to the
articles have been made will be bound to adhere to Article 30 of these
articles. This states that whilst directors may resolve to recommend
dividends, a final dividend should be declared by the shareholders at
general meeting or by way of written resolution.
This template contains the wording of the resolution required in order to
declare a final dividend following its recommendation by the directors at a
board meeting. This ordinary resolution may either be passed at general
meeting or by way of written resolution. You will also find templates for
both these options in this sub-folder. Note that a resolution is only
required for the declaration of a final dividend where a company’s articles
(usually if the company has private company model articles) requires it.
Directors are able to recommend and declare interim dividends.
This Shareholders’ Ordinary Resolution is in open format. The requisite
details should be inserted into the highlighted fields or the wording can
be adjusted to suit your purposes. Wording in square brackets is optional.
If it is required, then the brackets should be deleted and the wording
within them retained. If the wording is not required, then it can be
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