Hi, my limited company is now one year old. Last year I paid myself 4 interim dividends and one final dividend. For documentation, I used board of directors’ minutes for interim dividends and minutes of share holders general meeting for final dividend. I expect to pay 4 or 5 dividends in the current year. My accountant suggested that I can declare dividends using simple written resolutions of share holders rather than using board meeting minutes for interim and general meeting minutes for final dividends. Following is the format of written resolution I intend to use. My questions are as following:
1) Is it ok to use such resolutions to declare dividends 4 0r 5 times during the year?
2) Whether the Dividends declared using written resolutions are considered final dividends or interim dividends?
3) What about the wording of following resolution? Am I missing something?
(Below is the draft of resolution I intend to use?)
WRITTEN RESOLUTION
OF SHAREHOLDERS of xyz limited
Registered in England and Wales
We, the undersigned, all being members of the above company, for the time being entitled to receive notice of, and vote at General Meetings, hereby unanimously pass the following resolutions and agree that the said resolutions shall for all purposes be as valid and effective as if the same had been passed at a General Meeting of the company duly convened and held. The following written resolutions to declare final dividend and to ratify interim dividend already paid were agreed and passed by the members of the company on 01-02-2020.
I. Following consideration of the availability of distributable profits, it was resolved unanimously to pay a final dividend of £ xx.00 per share (a total final dividend of £ xx00.00) in respect of the year ending on 01-02-2020 to the shareholders of record on 01-02-2020 in the proportion of their respective shareholdings. . It was also decided to pay the dividend though bank transfer on 02-02-2020.
Names of Shareholders: Number of Shares Signature
Abc 100
1) Is it ok to use such resolutions to declare dividends 4 0r 5 times during the year?
2) Whether the Dividends declared using written resolutions are considered final dividends or interim dividends?
3) What about the wording of following resolution? Am I missing something?
(Below is the draft of resolution I intend to use?)
WRITTEN RESOLUTION
OF SHAREHOLDERS of xyz limited
Registered in England and Wales
We, the undersigned, all being members of the above company, for the time being entitled to receive notice of, and vote at General Meetings, hereby unanimously pass the following resolutions and agree that the said resolutions shall for all purposes be as valid and effective as if the same had been passed at a General Meeting of the company duly convened and held. The following written resolutions to declare final dividend and to ratify interim dividend already paid were agreed and passed by the members of the company on 01-02-2020.
I. Following consideration of the availability of distributable profits, it was resolved unanimously to pay a final dividend of £ xx.00 per share (a total final dividend of £ xx00.00) in respect of the year ending on 01-02-2020 to the shareholders of record on 01-02-2020 in the proportion of their respective shareholdings. . It was also decided to pay the dividend though bank transfer on 02-02-2020.
Names of Shareholders: Number of Shares Signature
Abc 100
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