When you waive your right to a dividend this is waived against a holder, can you waive your right to the dividend on some of your shares, say 50%
Thanks
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This is a legal question, but I think I have heard that the answer is no.
The way to achieve whatever the desired result is is for the company to pay two dividends in quick succession - with the shareholder in question waiving their entitlement to one of them but not the other.
Surely the simple solution is to waive your entitlement above X pence (X based on the 50% amount) per share?
SK in the link below agrees:
https://www.accountingweb.co.uk/any-answers/partial-dividend-waivers
I can't see the problem in waiving the entire dividend on some shares or part of a dividend on some or all of the shares.
Model Articles of Association envisage dividend waivers " in respect of a share", which suggests a waiver can be for one or more shares owned by a shareholder. However, I can't think of any reason why the Articles could not be amended to allow for a partial waiver "in respect of a share". There's nothing in statute that I'm aware of that prevents this - why would there be ?
I have not researched the point, but you would want to avoid any argument from HMRC (or whoever) about the deed being void for lack of certainty etc. (as possibly you cannot be certain which share(s) the waiver relates to if it is on a partial basis and does not specify the actual share(s) that it relates to, as shares are of course fungible).