S660 : How many people here are still allowing a partner to take dividends?

[VinnyB]

You can only pay dividends in proportion to the shareholding (assuming equal status shares),. You can't choose to pay one shareholder divis, but not the other(s).

Then I'm screwed.... seriously, I'll have to wait the outcome from Arctic and be prepared for the worse.

BTW she is an employee and shareholder. Can I make her redundant and pay her a tax free severance?

[Sockpuppet]

BTW she is an employee and shareholder. Can I make her redundant and pay her a tax free severance?

Depends what her "role" is.

If she is the Co Secretary then you have to make the position redundant not the person.

[xoggoth]

Haven't paid the wife anything for years. Not much point since she mostly starting earning over the higher tax rate limit.

[Mickmanus]

Differant share rights

You can only pay dividends in proportion to the shareholding (assuming equal status shares),. You can't choose to pay one shareholder divis, but not the other(s).

If you have differant share rights you can.

[xoggoth]

Assume what Martin B means by (assuming equal status shares). You can issue different classes of shares that allow you to vary the payments, might be easier than having to change shareholdings to vary amounts paid.

[ASB]

You don't need different right or different share classes. Irrespective of share allocations you can pay differing amounts. Just ensure you get a waiver from the shareholders being "short changed".

This is probably similar to standing in front of your locar IR office with a placard saying "come and get me" but it is legal.

[VinnyB]

Depends what her "role" is.

If she is the Co Secretary then you have to make the position redundant not the person.

She's not the CO sec, she just does the 'admin'. (and spends money)

[Back In Business]

The Co Sec thing isn't really that important (for this discussion), it comes down to shareholders. If you have 100% of the shares you cannot pay Divs to anyone else.

I would get an accountant . . . urgently.

[DaveB]

My partner - we arnt married - invested in the co. when it was started up and bought shares in the co at the time. She owns 1/3, I own 2/3 and divi's are paid accordingly.

She is also Co. Secretary but as has been said before this has no bearing on dividend payments.

[VinnyB]

The Co Sec thing isn't really that important (for this discussion), it comes down to shareholders. If you have 100% of the shares you cannot pay Divs to anyone else.

I would get an accountant . . . urgently.

Share is 50/50 between me and the wife. I have an accountant. Not happy with them, not just of the lack of advise/guidance I get.

I've learnt more since being on this forum than from my dealings with them.