Dividends and Distributions

If companies have sufficient distributable profits, the most popular method of returning value to shareholders is through dividend payments. 

The collection of dividend templates has this month been supplemented with some useful information on dividends.

The information in these pages considers:

• what dividends are;
• final and interim dividends;
• the procedure for declaring dividends;
• class rights and dividend payments;
• directors’ duties and liabilities, as they relate to dividends; and
• dividends and tax.

It is always recommended to seek independent legal and tax advice before considering any dividend payments.