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Dividend waived and kept in retained earnings

amiramir MAAT, AAT Licensed Accountant Posts: 21
Hi
we had a company with two directors (they are not spouses) and shareholders. In last accounting period Company made a big profit and both directors/shareholders decided to take only half of there share of dividend and left remaining in the Company. there is no formal document of dividend waiver as such. Now this accounting period the company made a moderate profit and the dividend available this year is only for the profit that company made this AP and last AP's dividend is sitting in retained earnings. is there a way that Directors can take dividend that had previously been left in the Company?

Comments

  • douglasstrouddouglasstroud Registered Posts: 182
    Are the shares of the same class?
    If so and both took the same amount in dividends then why waiver surely you only declare the dividends they take and the rest stay in retained earnings to be taken whenever, but you can not now back date the dividends
    amir
  • amiramir MAAT, AAT Licensed Accountant Posts: 21
    Yes shares were of the same class.
    thank you very much, it is clear now.
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