BoJangles wrote:jantra wrote:BoJangles wrote:Update: CS has spoken with one of the accountants. It would appear there is no DL. The reason there is no DL is because part of other 50% shareholder Dividend is transferred to D to cover D's overdrawn draws resulting in no DL. When queried how this money is repaid to other 50% shareholder and citing a bit of Companies Act, CS was told it was a personal matter, I am assuming Civil Courts, am I correct?
are the shares jointly held or owned separately?
I am not sure. All I know is CS (50% shareholder) owns half the co according to accountantsjantra wrote:if they are owned separately then each shareholder is entitled to receive their dividend directly. The accountants may be doing what they think is correct to avoid s455 tax on overdrawn DLA's (charging the full divs against the DLA), and normally this would be fine, as you have transfer of assets between spouses at no gain or loss, however in this case one shareholder would like the divs paid directly.
Yep, that is what has been happening hence the arguments when CS's signature required. Accountant said after long discussion that the problem was, that they had been treating the account as one instead of two.jantra wrote:write a letter (as a shareholder) to the company asking for clarification why the divs weren't paid to the shareholder directly.
Already been raised albeit not in writing, D just laughed
your role as CS is different from your role as shareholder