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Dividends in a private company

What percentage of shareholders do you need or what percentage of the directors do you need to force a dividend to be paid by a company.

I can see references to AGM's for Final Dividends but what about interim dividends?
Colin Higginson

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29th Aug 2006 14:37

Thanks
Many thanks Martin, that is very helpful.

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25th Aug 2006 21:32

need to look at......
....The Company's Articles of Association, Colin. That is the legal document governing such matters. To be honest, it's a bit pointless speculating based on generalities when they will be definitive on the matter.

It's possible there may also be a shareholders agreement which, if properly drafted and executed, may effectivly override the Articles.

Absent any statements whatever in the Articles or Shareholder Agreement on the topics, then a directors meeting, quorate and properly held, could vote by simple majority for or against an interim dividend.

Absent any statements whatever in the Articles or Shareholder Agreement on the topic, a simple majority (by reference to number of shares) of the shareholders can vote in or out a director at an AGM - but a properly constituted resolution would be needed. Again absent any other statements, 75% (by reference to number of shares) of shareholders could "force" an EGM, and put forward (and vote through) special resolutions to kick off the directors who did not want to vote a dividend and replace them by directors who did.

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