Can I vote dividend if there is no retained profit?

No. If a dividend is voted with insufficient retained profit it is called an ‘illegal dividend’. This should be avoided by preparing accounts and including a Corporation Tax provision before viewing retained profit and voting a dividend.

Damion Viney

Damion Viney has been supporting business owners to make a success of their ventures since 2011 when he set up Co-. Blogs cover all aspects of business development. He is co-author of Improving the Numbers

linkedin.com/damion-viney

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