Am I entitled to dividends as a company director

[Conbobulator]

Hi there,

I am one of 3 directors of a privately held family business. I own 10% of the company and have received dividends while working there. I am temporarily not working for the company because of extended maternity leave. Am I automatically entitled to receive dividends from the company because I am a part owner of that company? Should the amout of dividends received be proportional to my shareholding? If I stop working in the company but remain a part owner, am I still entitled to receive the dividends now and in future years?

Thank for your help,
Adrian

 

[Brendan Burgess]

If the company declares a dividend, you are entitled to 10% of the dividends.

Your shareholding is separate from your role as an employee and your role as a director.

However, the company does not have to declare dividends and as a minority shareholder, there is very little you can do about it.