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Split of share capital and dividends between husband and wife

Split of share capital and dividends between...

Current companies share capital is split between two directors (A)51/ (B)49. 

Future divdends declared are only to be awarded to director A (wife/husband company but it is only the wife who runs the business).  Is it easier to change the class of share director B holds so that they no longer have a right to a dividend.  Or should director A simply buy directors B shares and remove the husband as a director?  What is the process?

Thanks for any help, it's always appreciated!


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06th Oct 2010 13:18

Share waiver

Perhaps the easiest way would be for shareholder B to agree to waive his dividend?

Care must be taken to ensure that sufficient reserves exist to declare a full dividend. i.e. if shareholder A requires a dividend of £51 then a dividend of £100 must be declared and shareholder B's dividend of £49 is not paid.

Please note that whether the individuals are directors or not will not make any difference. (I have BT shares but have yet to be invited to become a director).




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