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Dividends (interim and final)

Can I use Kudocs to issue a dividend?  Yes. Kudocs can be used to issue interim or final dividends.  You can ask the system to do as much or as little as you want, including dividend waivers, shareholder or board approval (via resolution or board meeting), generate dividend vouchers and ask recipients for bank/ payment details.  Once you have added a dividend to Kudocs, it will be added to the dividend register for future records.


What is the difference between interim and final dividends?  

An interim dividend is:

  • a distribution to shareholders that is declared and paid before a company has determined its full-year earnings;
  • usually distributed on a quarterly or semi-annual basis;
  • usually approved by a board resolution.

A final dividend is:

  • a distribution to shareholders that is declared after the company has issued its full-year financial statements for its fiscal year;
  • usually approved by a shareholder resolution.

The process to approve and issue the dividend is broadly similar in both cases,


What is a dividend waiver?  In certain circumstances a shareholder may choose to waive their dividend entitlement.  This may be for a number of reasons, including tax.  If a dividend is waived, the company can either retain the waived amount or distribute it amongst the other shareholders in the dividend distribution.


How does Kudocs calculate dividend entitlements?  Can I amend the calculation?  Kudocs automatically calculates dividend entitlements based on (i)  the share classes with dividend rights and (ii) of those, which share classes have been selected for the dividend issue.  You can either input an amount/share and Kudocs will multiply that by the relevant number of shares to work out the total dividend, or you can enter the total amount to be distributed and Kudocs will divide that by the relevant number of shares to work out the dividend/share.  This will also take into account any waiver and how the waived dividend is to be treated (distributed or retained).

Once Kudocs has calculated the default dividend amount you can amend each amount.  You may want to do this if there are any specific adjustments that need to be taken into consideration.


Does Kudocs generate dividend vouchers?  Yes, if needed.  You can select to generate wet or electronic signature vouchers (or none at all), and to send them to shareholders.  Vouchers (if generated) will be stored in Kudocs in the usual folders and accessible via multiple routes – like share certificates.


Does Kudocs generate a dividend register?  Yes.  The dividend register is created automatically once you issue a dividend in the system.

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