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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Onwer managed company
A owner-managed Co is one that is managed by shareholders right ? Does that mean that they dont need to be paid dividends?
No company ‘needs’ to pay dividends. The usually will because shareholders will usually want dividends, but it is not a ‘law’ that they should pay dividends.
An owner managed company is one where the shareholders is also the manager. They will still quite likely pay dividends, but it is the owner who will decide whether or not to.
Okay got it thank you!
You are welcome 🙂
