Overview

From a director's perspective, in addition to creating a strategy to increase shareholder value, he or she must also consider how that value should be distributed. It is a fundamental principle of company law that the property of a company belongs to itself and not to its shareholders. For that reason a company cannot simply pay or distribute its property to its shareholders: the Jersey Companies Law sets out requirements that must be satisfied before such a payment or distribution may be made.

In this briefing, offshore specialists Mourant Ozannes analyse how Jersey law deals with the shareholder dividends and the important issues a director should consider before making a payment. In doing so, the following areas are covered:

• final and interim dividends;


• cash and kind;


• preferential dividends;


• "inadvertent" distributions; and


• practical advice for directors.

To read on, click 'View Briefing'.