A Resolution of Directors Approving Stock Dividend is a document approved by the board of directors of a company that authorizes the distribution of stock dividends to shareholders. This resolution outlines the terms of the dividend distribution, such as the number of additional shares, the date of the distribution, the record date, and the payment date. It also states the total number of shares outstanding, the par value of the shares, and the total cash dividend amount. There are two types of Resolution of Directors Approving Stock Dividend: Cash Dividend Resolution and Stock Dividend Resolution. A Cash Dividend Resolution authorizes the distribution of cash dividends to shareholders, while a Stock Dividend Resolution authorizes the distribution of additional shares to shareholders.
Resolution of Directors Approving Stock Dividend
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FAQ
Directors will make a recommendation as to the amount of dividend, but they must seek approval from the members at a general meeting or via a written resolution. At this point, the shareholders can decide to reduce the level of dividend payment, but they cannot declare a higher amount.
XYZ CORPORATION RESOLVED: That the sum of is hereby set aside to be distributed to the common stockholders of the Corporation by a declaration of a dividend in the sum of $ per share for each and every share of common stock.
A company's accountants or comptroller recommends a dividend to the board of directors. The board reviews the company's financial statements and considers the dividend. If the board feels that a dividend is warranted, it votes to approve the payment. The declaration date is the day the approval is granted.
The directors make a recommendation to pay a dividend and this goes to shareholder approval via an ordinary resolution. Shareholders cannot increase the amount of dividend decided upon by the directors. Private companies don't have to vote on dividends at an AGM.
Hold the annual general meeting and pass an ordinary resolution declaring the payment of dividend to the shareholders of the company as per recommendation of the Board. The shareholders cannot declare the final dividend at a rate higher than the one recommended by the Board.
Cash dividends are declared by director resolution, which usually specifies a dollar amount per share and directs payment of the dividend to all shareholders entitled to receive it. Property dividends are less common, but are equally available for use by the board of directors.
A dividend declaration typically requires the board to adopt a resolution authorizing the dividend payment (although written consent from every member of the board to pay a dividend may take the place of a resolution).
Resolutions of the board of directors declaring a stock dividend. These resolutions can be used for either a private or public corporation. They are drafted as Standard Clauses to be inserted into board minutes or a resolution in writing of the board.
