Interim Dividends and new share issues

JJH1969

I have a client (owns 100% of shares 100 shares at £1 each)who has issued interim dividends 13/14 and is now about to issue new shares to his wife (75 shares £1 each). The interim divs still stand to date dont they but any new interim dividends after his wifes share allocation will go to her too?
Thank you in advance - cant find anything anywhere on timing of allotting shares!

jamesm96

JJH1969 wrote: »

I have a client (owns 100% of shares 100 shares at £1 each)who has issued interim dividends 13/14 and is now about to issue new shares to his wife (75 shares £1 each). The interim divs still stand to date dont they but any new interim dividends after his wifes share allocation will go to her too?
Thank you in advance - cant find anything anywhere on timing of allotting shares!

The divi's are paid on shares in issue at the time of declaration so, yeah, previously declared divi's are as they were.

Any further interim divi's can, though, still be paid on shares at an earlier date (though I'll stand corrected if there's a technicality on that). For example, if the new shares are issued on 1 August 2013, you could still subsequently declare a dividend, paid on shares in issue at 31 July 2013.

Failing that, given that the two shareholders are husband and wife, you can just prepare a dividend waiver from, say, the wife, so that the husband can still take all the divi (such as if he needs to clear his loan account).

Mike.

JJH1969

Thanks Mike