Companies Act 2014 section 125

Supplemental provisions in relation to section 124

Section 125 sets out the practical rules for how dividends and bonuses may be distributed to shareholders, whether in cash or in the form of specific assets, and provides that dividends do not bear interest against the company.

• A general meeting may direct that dividends or bonuses be paid wholly or partly by distributing specific assets such as paid-up shares or debentures of another company
• Directors are responsible for carrying out such distributions and may resolve practical difficulties, including issuing fractional certificates, making cash adjustments, or vesting assets in trustees
• Cash dividends may be paid by cheque posted to the shareholder's registered address or by direct bank transfer where agreed with the payee
• No dividend bears interest against the company, and any one joint holder may give a valid receipt for payments on jointly held shares