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So what is a Dividend?

A short and sharp one today. If a company has made enough profit it is able to pay its shareholders a dividend. The dividend is the payment.

Important Notes

• A company should not pay dividends in excess of its available profits from the current and previous financial years

• Dividends do not count as business costs

• When paying dividends a directors’ meeting must be held (with minutes drawn up)

This post was brought to you by Mathew Aitken at Companies Made Simple – The Simplest Company Formation Service

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