Dividends are payable when declared only. There may be a mechanism in the investor agreement which requires payment of dividends to the parties where distributable funds are available. The preference shares of the investors may have voting rights in the event that dividends are not paid, and this will alter the balance.<\/p>\n
The controllers may be precluded from paying salaries above a certain level to themselves. The entrepreneur may be precluded from paying salaries and other benefits above a certain level. Its ability to declare dividends is likely to be limited and controlled.<\/p>\n
If the company is growing quickly and has significant prospects in the short to medium term, with perhaps an initial public offering, there may be less pressure for debt servicing and dividends in the short to medium term.<\/p>\n\n
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Investment Structure The price the investor pays for their shareholding proportion is a critical commercial term that will likely be subject to negotiations. Entrepreneurs usually aim for the highest cash input for the least shares, while investors seek a fair share of the equity and other share capital. The ultimate valuation depends on an assessment […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[394],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/29816"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=29816"}],"version-history":[{"count":5,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/29816\/revisions"}],"predecessor-version":[{"id":29827,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/29816\/revisions\/29827"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=29816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=29816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=29816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}