This screen is used to prepare the details for a dividend declaration. On clicking SUBMIT, dividend certificates are prepared. When approved accounting entries are made that debit the Distribution to Equity Shareholders account and credit the Dividends Payable account.
There are detailed Company Law and Tax issues on dividends, you are strongly advised to seek professional advice if you are at all uncertain as to the consequences of making a dividend declaration and payment.
Select the dividend type for the declaration, either interim or final
There can only be one final declaration for a particular financial year.
Note, whilst Directors may approve an interim dividend, only shareholders can approve a final dividend declaration.
Select the financial period for which the dividends are being declared. The appropriate year end date will appear on the Dividend Certificate.
Any number of interim declarations may be made but only one final declaration for the particular financial period is possible.
Dividend Rate (in pence per share)
Enter the rate of the dividend declared in pence per share for the class of share.
For example 50 will represent a dividend rate of £0.50 per share held, a rate of £1.50 will be entered as 150.
Approving Company Officer
From the drop-down select the name of the officer that is to appear on the dividend certificate.
Only Directors and Company Secretary will appear in the list. Defining an Officer is done via the Manage Employees maintenance screen.
Dividend Declaration Date
Enter the date of the dividend declaration. Note the default is todays date.
This date will appear on any dividend certificate issued and will be the date of the accounting entries.
The Approving User
This field displays the Username of the user preparing and confirming the dividend declaration.
This Username will be stored as part of the record of this declaration.