Currently a fraud to backdate dividend paperwork, which is fine for big companies and plc's, of course, but for micro companies – sole director/shareholders it is not feasible or practicable to have the information together before the year end to establish whether a dividend is payable, leaving the option to declare a dividend which may turn out to be illegal, or backdate paperwork which constitutes fraud.

The government is encouraging businesses to incorporate but in many cases, the legislation does not allaw for them.

Why is this idea important?

Better regulation and reporting of companies must be of benefit to the government, but whilst the legislation allows some leeway with reporting (FRSSE), some parts such as voting dividends  in this way do not work when the company is very small.

This would allow the businesses to use a company properly and advisors acting in the best interest of their client are not at risk of breaching laws meant to safeguard shareholders of larger companies.

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