easyJet 20/21 season on sale

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Viewing 8 posts - 16 through 23 (of 23 total)

  • LuganoPirate
    Participant

    Just to take the opposite side of the coin. The dividend was declared before this became a pandemic. As such it is owed to the shareholders and is a liability on their balance sheet. Legally they cannot “not” pay the divi. As far as I know, without researching it, they have made profits on which tax has / will be paid, and of course the dividends will be taxed.

    If you are sure that legally they cannot avoid payment, how would you say that the likes of ITV, Travis and Persimmon managed to do exactly that?

    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!

    1 user thanked author for this post.

    ASK1945
    Participant

    Just to take the opposite side of the coin. The dividend was declared before this became a pandemic. As such it is owed to the shareholders and is a liability on their balance sheet. Legally they cannot “not” pay the divi. As far as I know, without researching it, they have made profits on which tax has / will be paid, and of course the dividends will be taxed.

    If you are sure that legally they cannot avoid payment, how would you say that the likes of ITV, Travis and Persimmon managed to do exactly that?

    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!

    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 Several companies with whom I am invested (not in your list) had declared their dividends but have subsequently withdrawn them.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
    Participant

    Just to take the opposite side of the coin. The dividend was declared before this became a pandemic. As such it is owed to the shareholders and is a liability on their balance sheet. Legally they cannot “not” pay the divi. As far as I know, without researching it, they have made profits on which tax has / will be paid, and of course the dividends will be taxed.

    If you are sure that legally they cannot avoid payment, how would you say that the likes of ITV, Travis and Persimmon managed to do exactly that?

    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!

    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.

    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
    Participant

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


    FaroFlyer
    Participant

    Just to take the opposite side of the coin. The dividend was declared before this became a pandemic. As such it is owed to the shareholders and is a liability on their balance sheet. Legally they cannot “not” pay the divi. As far as I know, without researching it, they have made profits on which tax has / will be paid, and of course the dividends will be taxed.

    If you are sure that legally they cannot avoid payment, how would you say that the likes of ITV, Travis and Persimmon managed to do exactly that?

    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!

    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
    Participant

    FaroFlyer

    My own experience as an investor is that is correct.


    FaroFlyer
    Participant

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

    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
    Participant

    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.

    2 users thanked author for this post.
Viewing 8 posts - 16 through 23 (of 23 total)
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