Shareholders’ Ordinary Resolution – Declaration of Dividend

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 that have not been amended or modified are bound by Article 30, which provides that, whilst directors may resolve to recommend dividends, a final dividend should be declared by shareholders at a general meeting or by written resolution.

What this shareholders’ ordinary resolution does

This template contains the wording of the ordinary resolution used to declare a final dividend after it has been recommended by the directors at a board meeting.

The resolution may be passed either at a general meeting or by way of written resolution. Templates for both options are available in this collection.

When do you need shareholder approval?

A shareholder resolution is only required for the declaration of a final dividend where the company’s articles require it (often where the company has private company model articles).

Directors are able to recommend and declare interim dividends.

Shareholders’ Ordinary Resolution – Declaration of Dividend is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.