Template documents for Paying and Waiving Dividends

Dividends are paid to shareholders from a company’s post-tax profits. When and how a company can pay dividends is governed by the Companies Act 2006 and the provisions of a company’s articles of association. 

The Dividends Sub-folder contains a guidance note which is a practical guide to dividends and takes the reader through what a dividend is, the procedure for declaring and paying dividends, the paperwork involved and how a shareholder can waive their entitlement to a dividend.

There are several supporting documents including board minutes for directors’ to recommend and declare dividends (depending on their articles of association), a shareholders' resolution to declare a dividend, a tax voucher which can be printed off and used as a formal record of the dividend by a company to send to its shareholders and a deed of dividend waiver where a shareholder can formally waive his/her entitlement to a dividend should he/she for example as a SME business owner, wish to retain funds in the business rather than take money out as a dividend.

• Guidance Note – Dividends
• Board Minutes – Dividends (companies with modified model articles)
• Board Minutes – Dividends (companies with model articles)
• Shareholders’ Ordinary Resolution – Declaration of Dividend
• Written Resolution – Declaration of Dividend
• General Meeting Minutes – Declaration of Dividend
• Dividend Voucher (Pre 6th April 2016)
• Dividend Voucher (Post 6th April 2016)
• Deed of Dividend Waiver
• Board Minutes – approval of a dividend in specie
• Ordinary Resolution - Dividend in Specie

Dividends are part of the Corporate folder. Access all Corporate documents for £35+VAT.