Dividend and shareholders

Rachel

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?

Gem7321

Do they hold different share classes? Ie. A shares and B shares and only the A shares were paid a dividend?

Rachel

Thanks for response, there is no mention of A & shares.

groundy

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

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

What Groundy said.

Rachel

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

Rachel wrote: »

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....!