Paying Dividends to Shareholders
28th February, 2020

Paying Dividends to Shareholders

As the financial year draws to a close there are a number of actions you will be taking to ensure your clients are prepared to file their annual accounts correctly and on time with HMRC and Companies House.

One action which may be a consideration for your clients is paying dividends to shareholders. They may also want to pay different dividends to different shareholders be it their family members or employees.

Alphabet Shares

One way to do this is with alphabet shares, which allow your clients to allocate shares with different classes to shareholders which are recognisable by a specific letter e.g. A Ordinary share, B Ordinary share etc. These shares are most commonly used to pay different amounts of dividends to shareholders.

However, clients who want to pay dividends to shareholders with alphabet shares will need to ensure their articles of association contain the correct provisions which identify the rights attached to each different class of share. If the correct provisions are not in place in your client’s articles each different class of share will be ranked equally.

This is where Stanley Davis company secretarial team can help amend and redraft your client’s company articles of association.

With a wealth of experience spanning over 40 years and working with not only accounting firms but law firms, you can trust in our expertise and competitive pricing to provide your clients with the best bespoke company secretarial service on the market.

If you or your clients have any questions about paying dividends to shareholders or amending articles of association contact our qualified company secretarial team and a member of our talented team will be on hand to guarantee you have all the support you require to satisfy your client’s needs.

Contact our secretarial team today on 0207 554 2261 or email our team here

If you would like to find out more information about our full company secretarial services please click here

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