This guide explains how to issue dividends (interim and final) using Kudocs.  This includes running a board or shareholder resolution (if required) and generating dividend vouchers (if required).

The action is available via:

  • Accounts, Charges & Dividends.

Perform and Record route

Select this route and Kudocs will help you complete all the necessary steps for this action. You can use Kudocs to do as much or as little of the process as you want (e.g. opt in or out of using Kudocs to generate the board/ shareholder resolution approving the dividend).
Step 1

Select what type of dividend you want to issue - interim or final

More detail
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, subject to the company’s rules.
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Step 2

Review the proposed dividend amounts and amend if necessary, including any shareholders are waiving their dividend entitlement

More detail
Kudocs will calculate the dividend amounts based on an equal split between the shareholders in the share classes selected to receive the dividends. However, if certain shareholders are entitled to receive a different dividend amount, you can manually amend their entitlements to reflect that.

If there are any waivers, Kudocs will calculate the dividend amounts accordingly - ie whether to divide the amount that the shareholder(s) would otherwise have received between the remaining shareholders in proportion to their holdings or retain the amount.
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Step 3

Select if and how you need the dividend approved

More detail
Use Kudocs to generate and send out a written shareholder or board resolution to approve the dividend (using Kudocs' bespoke electronic voting system). Or generate a board minute to record a decision already made. Or, if the dividend has already been approved by some other means, you can skip this section.
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Step 4

Select if you want dividend vouchers generated and if you want to ask recipient shareholders for payment details

More detail
Use Kudocs to generate dividend vouchers in bulk (including electronic signature by a director). You can also use Kudocs to send an email to shareholders asking for payment details, to make the payment of the dividend even easier.
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Step 5

Review and get started

More detail
Check all the information you have entered and then let Kudocs take care of the rest. The system will complete all the necessary steps you have requested to implement the dividend issue.
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Outputs - all handled automatically by Kudocs

  • Electronic voting (if requested) will be sent out to relevant stakeholders.
  • Dividend vouchers (if requested) will be generated and stored in the system.
  • Activity information stored in Kudocs for future reference & any documents filed in document store.
  • Dividends registers updated.

Free Incorporation with every Kudocs package

Kudocs is an authorised Companies House agent