Blog

June 9, 2024

Dividend distribution

You might be thinking, "It's my company, I can pay dividends if I want to." Absolutely, you can, but it’s important to proceed with caution. Paying dividends in a small business isn’t just about moving money; you need to ensure there are enough reserves in the company. Otherwise, the dividends could be deemed 'illegal.'

Our firm specializes in helping you assess your company's financial health and establish a robust process for dividend distribution. This way, you can distribute dividends confidently and maintain financial compliance.

Let’s work together to secure your financial peace of mind and ensure dividends flow smoothly into your personal account.

 

How to distribute dividends

  • establish the distributable reserves
  • determine the total amount to be distributed
  • calculate the dividend per share
  • hold a board meeting and prepare minutes approving payment
  • make payment to the shareholders and prepare dividend vouchers