Introduction to this document

Written ordinary resolution to approve final dividend

A company can only pay a dividend if it is first approved by its board of directors or shareholders. For a final dividend approval is required by the shareholders. The approval can be given at a shareholders meeting or by written resolution.

Written approval

To pay a final dividend it must be approved by a majority vote by the companys shareholders. They must decide if the company has sufficient distributable profits from which the dividend can be paid. They should take into consideration the results of the last approved accounts and any subsequent draft or management accounts, plus any other relevant information.

The written resolution can be an ordinary resolution. The resolution should be drafted and distributed to the shareholders in accordance with the Companies Act 2006.  Use our Written Ordinary Resolution to Approve Final Dividend for this purpose.