The following Corporate guidance note provides comprehensive and up to date legal information covering:
When a listed company or an AIM company wishes to declare and pay dividends to its shareholders, it has to comply with the provisions of the Companies Act 2006 (CA 2006). For a general explanation of the CA 2006 provisions relating to dividends and distributions, see Practice Note: Dividends and distributions.
In addition, a listed company must comply with:
the Admission and Disclosure Standards (the Standards) of the London Stock Exchange (LSE)
the LSE's Dividend Procedure Timetable
the Listing Rules (the LRs), and
the Disclosure Guidance and Transparency Rules (the DTRs)
While an AIM company must comply with:
the AIM Rules for Companies, and
A listed company should also have regard to the guidance issued by institutional investor bodies, while an AIM company may choose to do so.
This Practice Note summarises the rules and regulations that apply to a listed company or an AIM company, in addition to those in the CA 2006, relating to the declaration and payment of dividends. It also considers how they are applied in practice.
There are additional rules that apply to a listed company in relation to the declaration and payment of dividends.
The Standards set out the rules, responsibilities and ongoing disclosure obligations of a listed company. They do not apply to an
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