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Final Dividends

Final Dividends

My understanding of the difference between a final dividend and an interim dividend is that an interim dividend is not approved by the shareholders only by the directors.

A final dividend being approved in a general meeting.

My question is can more than one general meeting be called to declare more than one final dividend within one accounting year?

Your thoughts are greatly appreciated. 



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06th Apr 2012 16:49


The declaration of a dividend may, and often does, rely on the Articles.

However dividends must be paid out of profits, or may be regarded as directors loans.

Interim dividends no longer require a Board Meeting to approve, but directors may declare one (subject to the Articles).

Final dividends are payable only when an ordinary resolution is passed by company shareholders in a general meeting.

As with all company business, decisions to pay interim and final dividends must be recorded.

Final is generally taken to mean 'Final' therefore this becomes a question of semantics, and the Articles. The most straightforward method would be to declare an interim dividend as soon as possible in the next financial year.



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08th Apr 2012 15:35

Covered in my article dated 4 Jan 2011 

You might like to read my article on this subject as per the link above.... if only to add to the 21,410 hits already made!

Declaration of dividends/payment legalities etc are covered in detail in an easy to follow 'checklist' format.

Jennifer Adams FCIS TEP ATT (Fellow)

Assistant Editor Accountingweb

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to Chintan
08th Apr 2012 19:35


As a mere ACIS, I have read your article which goes into more detail than I have done, and is very well written. Although I have retained my membership of ICSA, this is more for a personal, rather than business, satisfaction. I felt that this was an under-valued degree, especially in Scotland. For example, one of my colleagues, some years ago, attended an interview at a local branch of a large recruitment agency, whose name I cannot mention but rhymes with maize, and on stating that she was a member of the Institute of Chartered Secretaries and Administrators , was asked how many words a minute she could type.

However, I am pleased that I have almost withdrawn from company secretarial work, as I feel I am not as knowledgeable as the 'man in the pub' who gives advice on all matters.

I still run my small accountancy business which most, if not all, my clients appreciate.

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09th Apr 2012 12:45

So the answer to the original question is,,,,

... as often as you like.

Provided you observe the formalities properly a final dividend can be declared every 5 minutes if the shareholders so desire!

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