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Posted Thu, 04 Jul 2024 09:34:56 GMT by Zahir Mohammed
2 Company Directors of Trading company + these 2 directors are also directors of an Associate Family Investment Company. Alphabet ShareStructure in Trading Company One Director has 50 A Shares in Trading Company One Director has 50 B Shares in Trading Company The Family Investment Company has one C share in Trading Company The two directors decide dividend distribution from available profits based on above share structure. Question - The Family investment company receives the majority of dividend distribution as declared by the two directors of the trading company. Are there any rules or guidelines to determine what this dividend distribution amount should be?
Posted Fri, 12 Jul 2024 07:16:46 GMT by HMRC Admin 25 Response
Hi 
This is a tax planning question, for which it would not be appropriate for HMRC to comment upon.
The company’s ‘Shareholders Agreement’. A shareholders’ agreement sets out how a private company should be operated and regulates the various shareholders’ rights and obligations.
You may wish to seek the guidance of an accountant.
Thank you. 

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