| Commentary

156 Scrip dividends

| Commentary

156 Scrip dividends

Although a company will in most cases pay dividends to its members in cash, it may take the decision to issue all or part of a member’s dividend in the form of further shares in the company, in which case the usual procedure is for the company to give the shareholder the choice of cash or shares. Where a company issues dividends in the forms of shares, this is normally known as a ‘scrip issue’ and the Companies Act 2006 is silent on the practice, neither forbidding it, nor containing any provisions regulating the way in

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