Redeemable Share Dividend Clarification
Summary
The clause regarding expenses and liabilities of the Company seems to apply only to the Profit Share element, not the fixed 7.5% dividend. However, consulting a legal professional for a detailed review of the share certificate and relevant company policies is advisable. Consider discussing this issue with the companys administration or legal team for further clarification.Full Conversation
I owned a redeemable share certificate which includes the following pertinent clauses:
Profit Share means the net profit available for distribution to the Redeemable Share Shareholders after settlement of all expenses and liabilities of the Company including, but not limited to, Corporation Tax.
The registered holder of each Redeemable Share shall be entitled to a dividend of *.*% per annum on the amount paid up or credited as paid up in respect of the Redeemable Share together with a dividend equivalent to */900th of the Profit Share such dividend to accrue and be paid on the Redemption Date.
My question is whether the dividend is subject to the "expenses and liabilities of the company clause" or whether that only applies to the Profit Share element.
Based on the information provided, it seems that the clause regarding "expenses and liabilities of the Company" pertains only to the Profit Share element, not the fixed *.*% dividend.
However, it's still advisable to consult a legal professional for a detailed review of the share certificate and any relevant company policies.
Is there anything else you need help with?
no, that was useless
Hey ****, I understand your frustration. Based on the information you've shared, it does appear that the "expenses and liabilities" clause primarily applies to the Profit Share element. The fixed *.*% dividend should not be subject to these deductions.
Have you raised this issue with the company's administration or legal team?