Introduction to this document

Company dividend checklist

There are a several steps involved in paying dividends to shareholders. Our checklist takes you through the process.


Dividends are often paid in cash to shareholders, but can be credited to a director shareholder’s loan account. Dividends can take the form of a non-cash asset (known as a “distribution in specie”, or “in kind”), in which case the shareholders must declare and approve the dividend. They can also be paid in the form of further shares (known as a “stock”, or “scrip”, dividend), although this is, strictly speaking, a bonus issue rather than a dividend, so the procedure for making a bonus issue should be followed instead.

Using the checklist

The Company Dividend Checklist provides a useful starting point as it sets out the process in advance so you know what the steps are and what paperwork you need to check/prepare.