Company shares and Dividend Questions

[mart2]

I am being puzzled. no-one can answer my question. friend of mine gave me this forums address and he thinks someone can help me with my queries .

I registered my company last year through my accountant. by mistake she allotted 50 share in the company and allocated those 50 shares to me. there is no other share holder in the company even though friend of mine recently joined as a director. I took 100% dividend from the company. question is am I allowed to take 100% dividend from the company? as there are no other share holder in the company.


Thanks

[Yash001]

You can call companies house to clarify your doubt ...based on my understanding since you are the only Shareholders,you can claim 100% dividend...

[mart2]

Thank you yash, I appreciate your kind reply.

I am really puzzled and confused. I called company house today. The lady over the phone said she can't give me any advice about dividend but "there is no minimum requirement about 100 share or 50 shares. company can even have 1 share".

According to solicitor I am entitle to get 100% shares.
but my account said I have to allot and allocate 50 more share in the company to get 100% dividend . according to her I am eligible to get 50% profit only, company itself an entity so rest of the 50% profit should be held in the company.

[mart2]

I will appreciate if anyone with company law please advise me what should I do .

thanks

[karg_g]

Hi

Since ur friend doesn't own any shares in your limited company he his not entitled to any dividends. This effectively means ur the sole director.

Usually accountants register limited company with 100 shares. If companies house has verified there is no other share holder your eligible for 100% of dividends declared. If this is the case u need to add ur friend has director has either 10% or 20% or 50% share holder of the company assuming u want to.

[mart2]

Why should I give share to my friend?
my question was if company allotted 50 share and I own those 50 shares, am I allowed to take 100% dividend ?

Hi

Since ur friend doesn't own any shares in your limited company he his not entitled to any dividends. This effectively means ur the sole director.

Usually accountants register limited company with 100 shares. If companies house has verified there is no other share holder your eligible for 100% of dividends declared. If this is the case u need to add ur friend has director has either 10% or 20% or 50% share holder of the company assuming u want to.