So why do shareholders invest in limited companies?
To receive dividends of course.
A company is in business to make a profit and the shareholders expect to get a return on their investment in the company. So many small companies now pay dividends on a regular basis to reward the shareholders.
For a dividend to be legal the directors must be able to demonstrate that the company had made profits at the point the dividend is paid. It is also a requirement of company law that the dividend is voted by the Board of Directors and also to provide the shareholders with a dividend voucher which is proof that the dividend has been paid.
Many JacRox clients pay dividends on a monthly basis and we are able to offer you a service to ensure that you meet your obligations in Company Law by providing the shareholders with dividend vouchers each time a dividend is paid.
If you are paying dividends to your shareholders then you need to ask about this service, speak to the JacRox team today on 0800 020 9542 or email firstname.lastname@example.org.