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Treasury Shares and dividends

Treasury Shares and dividends

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We have taken on a client and part of the shareholding appears to be shares held in treasury, the shares are listed in the name of the company itself, the other shares in the same class belong to individuals, I know treasury shares can't vote or receive dividends so how do the other shareholders receive their dividends, are the treasury shares treated as waiving the right to receive the distribution, if so does the company then need to have sufficient reserves to cover the potential distribution to all the shareholders. Thanks

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By David Ex
02nd Aug 2021 18:13

Pretty sure treasury shares don’t belong to anyone.

https://uk.practicallaw.thomsonreuters.com/1-107-7413

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