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Dividends

Continuing our series on legal and other concepts aimed at those working in tax, Malcolm Hurley, Tite & Lewis, discusses dividends

 
Continuing our series on legal and other concepts aimed at those working in tax Malcolm Hurley Tite & Lewis discusses dividends
 
Even in tough economic times shareholders expect a return from their investment and institutional shareholders in particular can put pressure on companies to deliver on such expectations. Directors are faced with a dilemma between maintaining sufficient reserves while retaining the support of shareholders.
 
Companies can deliver a return to shareholders in a number of ways including a buy-back of shares or a court-approved reduction of capital but the most common method of returning value to shareholders is by dividends.
 
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