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In the context of UK dividend law, I was curious if there is a statutory time limit for the companies to pay dividends right after the dividend is declared.
So the company can keep the shareholders’ dividends to itself as long as it pleases!
Theoretically, I suppose you’re correct
But think about this for a moment … how many of the company’s members would continue to hold shares in a company that declared dividends but then failed to pay?
And how many people would look at the company as a possible addition to their investment portfolio and then, discovering that the company has a history of non-payment of previously declared dividends, decide against investing?
Theoretically, yes, I suppose it could happen.
But practically … er, no
OK?
Interesting.
Thanks, Mike.
There should be a statutory time limit. Propose the Green paper LOL
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