Introduction to this document

Minute of board resolution to

pay interim dividend

Directors can usually pay interim dividends without approval of the shareholders. This decision must be properly documented in the board minutes. Our model shows you how.


The board minutes record that the directors properly considered the company’s financial position to check that the dividend payment is affordable. See our Distribution Flow Chart for which set of accounts to use and what questions to resolve.

The Minute of Board Resolution to Pay Interim Dividend assumes that the company’s initial/annual accounts show that it has sufficient distributable profits to pay the dividend. If the company had to refer to interim accounts, or if its auditor qualified the accounts, this will need to be reflected in the minutes.

Dividend details

The minutes also need to set out the amount of the dividend, and which shareholders will receive it. The dividend is usually paid on the same day as the board resolution. However, in larger companies with lots of shareholders it’s a good idea to set a cut-off date after which any new shareholders cannot participate in the dividend. So, all shareholders (in a particular class, if only one class is to receive a dividend) on the register of shareholders on a particular date will receive the payment. This is known as the “record date”. In this case, payment is usually made within 28 days of the record date.

Next steps

See our Dividend Checklist for the next steps in the process.