Dividend and shareholders

Rachel
Rachel Registered Posts: 348 Dedicated contributor πŸ¦‰
Ok it is late and I have had a really rubbish day, having one of those days where I think why am I a MIP,

Am I correct in saying that Shareholders should be paid equally per share? Apart from a waiver is there any reason why not?

I have a new client and there are 2 shareholders 50:50. They have just come out of an investigation which they appointed a specialist accountant to do after the errors of the first. Anyway I am looking through all paper work and can not see any dividend or payment for the 2nd shareholder everything appears to just be on the first. Am I just wrong or should they be paid equally?

Comments

  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor πŸ§™β€β™‚οΈ
    Do they hold different share classes? Ie. A shares and B shares and only the A shares were paid a dividend?
  • Rachel
    Rachel Registered Posts: 348 Dedicated contributor πŸ¦‰
    Thanks for response, there is no mention of A & shares.
  • groundy
    groundy Registered Posts: 495 Dedicated contributor πŸ¦‰
    If they hold the same share class and it is 50/50 then yes they should be paid equally subject to a waiver notice.
  • Rachel
    Rachel Registered Posts: 348 Dedicated contributor πŸ¦‰
    Thanks that's what I thought. They have just had to have the last 5 years accounts reworked. The other shareholder has just started as self employed and so I have done the sa but then discovered she was a shareholder. I have the evidence that no 1 has paid all the tax but it's not the point. As they paid a specialist recommended by HMRC for the last 5 years reworked I am querying it with them.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor πŸ§™β€β™‚οΈ
    What Groundy said.
  • Rachel
    Rachel Registered Posts: 348 Dedicated contributor πŸ¦‰
    They appear to be drafting a waiver notice and backdating and getting HMRC approval.

    I can't believe they did not check who the shareholders were when they took on the client. As part of my Money laundering procedures I find out this information as standard.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor πŸ§™β€β™‚οΈ
    Rachel wrote: Β»
    They appear to be drafting a waiver notice and backdating and getting HMRC approval.

    I can't believe they did not check who the shareholders were when they took on the client. As part of my Money laundering procedures I find out this information as standard.

    Quite.

    Good luck to them with backdating a dividend waiver....!
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