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Onwer managed company

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Onwer managed company

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • August 13, 2016 at 1:24 pm #332950
    AvatarAnuja Nair
    Member
    • Topics: 365
    • Replies: 353
    • ☆☆☆☆

    A owner-managed Co is one that is managed by shareholders right ? Does that mean that they dont need to be paid dividends?

    August 13, 2016 at 5:16 pm #332976
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
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    • ☆☆☆☆☆

    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.

    August 14, 2016 at 4:58 am #333040
    AvatarAnuja Nair
    Member
    • Topics: 365
    • Replies: 353
    • ☆☆☆☆

    Okay got it thank you!

    August 14, 2016 at 7:47 am #333060
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    You are welcome 🙂

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