Search results
Results From The WOW.Com Content Network
The Companies Act 2006 states in section 830 that dividends, or any other kind of distribution, can only be given out from surplus profits beyond the legal capital. [70] It is generally the decision of the board of directors, affirmed by a shareholder resolution, whether to declare a dividend or perhaps simply retain the earnings and invest ...
The directors of AWA called a dividend of €135 million to be distributed in May 2009 to the sole shareholder, Sequana SA, which paid off the debt that Sequana had owed to AWA. This complied with limits on dividends in the Companies Act 2006 part 23, and common law rules on capital maintenance.
The Companies Act 2006 (c. 46) is an act of the Parliament of the United Kingdom which forms the primary source of UK company law. The act was brought into force in stages, with the final provision being commenced on 1 October 2009.
The rules in Part 23 of the Companies Act 2006 (sections 829–853) govern the payment of dividends to shareholders. The Act refers in this section to "distribution", covering any kind of distribution of a company's assets to its members (with some exceptions), "whether in cash or otherwise".
In 1973, a partial imputation system was introduced for dividend payments, under which companies were required to withhold tax on dividends, called an advance corporation tax, before they were distributed to shareholders. UK companies could set off the ACT amount withheld against the overall company tax liability, subject to certain limits. [1 ...
This means it is a default rule, which companies can opt out of (s.20 CA 2006) by reserving powers to members, although companies rarely do. UK law specifically reserves shareholders right and duty to approve "substantial non cash asset transactions" (s.190 CA 2006), which means those over 10% of company value, with a minimum of £5,000 and a ...
In re Exchange Banking Company or Flitcroft's case (1882) LR 21 Ch D 519 [1] is a UK company law case concerning the payment of dividends.It was decided when the law required that dividends should only be paid out of a company's profits, although the courts deferred to company directors to define their own rules for determining when that was so.
Individuals and companies who received a dividend from a UK company received a tax credit representing the ACT paid. [16] Individuals could set off the tax credit against their income tax liability. [17] On introduction, ACT was set at 30% of the gross dividend (the actual amount paid plus the tax credit).