[LuganoPirate]

[postquote quote=994766][/postquote]

The difference, without researching all the company’s, is that Easyjet declared and the others had proposed.

Nothing to stop the directors rasing new cash through a share issue though!

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mkcol74

[ASK1945]

[postquote quote=994873][/postquote]

LP- I don’t know the legal position – but you may not be correct. Being retired I rely quite a lot on dividends, NOT including easyJet, for my income. Several companies with whom I am invested (not in your list) had declared their dividends but have subsequently withdrawn them.

Now, whilst this may cause a little difficulty for me, it’s not going to threaten my life in any way, whereas it may help these companies to continue to exist and their staff to get paid in full. I can live with this.

What I think has caused the upset is the large amounts collected by some individuals. But, some of them are known philanthropists and we don’t know whether they kept the money or used it in charitable ways.

[SimonS1]

[postquote quote=994874][/postquote]

Indeed I don’t believe it to be true either.

For example Persimmon dividend of 125p had been declared and was due for payment next week (2nd April). Travis Perkins dividend declared end Feb I believe. And so on.

[fatbear]

Isn’t just a case of an AGM resolving to reverse the decisions of a previous board meeting ?

[FaroFlyer]

[postquote quote=994873][/postquote]

Many years ago I was on the Stock Exchange. If my memory is correct there are 3 stages. First a dividend is declared / proposed. Second the proposed dividend is approved at the AGM, and dates are fixed a) when shares become ex-dividend and b) when the dividend will be paid. Third stage, all shareholdings on the share register at ex-dividend date will be paid the dividend on the date fixed for payment.

[ASK1945]

FaroFlyer

My own experience as an investor is that is correct.

[FaroFlyer]

[postquote quote=994886][/postquote]

No, it is not.

Directors hold a board meeting which will ask shareholders to approve the accounts and recommend a dividend payment to be approved at an AGM (Annual General Meeting). The Board of Directors could call for an EGM (Extraordinary General Meeting) to ask shareholders to approve not paying a dividend. I believe that this would have to take place between the AGM and before the shares become ex-dividend otherwise the company would face law suits from investors who bought shares between the AGM and shares going ex-dividend, in the certain expectation of receiving the dividend payment. As a general point of interest if a quoted company pays a dividend of £0.10 per share then, after shares become ex-dividend, the shares rarely fall by the full dividend value, unless in unusual market conditions.

[LuganoPirate]

I think the difference is if it’s a final that has been approved at the AGM, it legally has to be paid, but if it’s an interim the board can decide to withdraw it if circumstances so dictate. At least that’s what I’ve been told and my stockbrokers have just confirmed. Easyjet only pay once a year so it is always a final.

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mkcol74, FaroFlyer

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