Board Minutes to Declare a Dividend

Minutes that record the directors properly checking that the company has enough distributable profits before paying or recommending a dividend, and then approving an interim dividend or recommending a final dividend to the shareholders.

• Each time the company pays a dividend, including regular interim dividends to owner-directors
• When the directors recommend a final dividend for shareholders to approve
• As evidence for HMRC, lenders or a future buyer that dividends were lawful

• Complete the distributable reserves working in Schedule 1 first, using the relevant accounts
• Choose Option A (interim) or Option B (final) in clause 7 and delete the other
• Complete the entitlement table in Schedule 2 and issue a dividend voucher for each shareholder
• For a final dividend, get member approval using Schedule 3 before paying