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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4543
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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A client transferred 50% of his shareholding in a family company

Resolved Question:

A client transferred 50% of his shareholding in a family company to his wife by Deed of Trust.
The company is not a close company.
The dividend cheques have been received in his sole name so presumably the company register has not been changed
Can I still show 50% of the dividend on his Return and her 50% on her on?
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.
Dear Friend,
Hello and welcome. Thank you for providing an opportunity to assist you..
I am afraid, but you CANNOT do this.
The reason I see here that your Client is receiving the dividend in his solo name is ***** ***** transfer had NOT been affected by book closure date.
Though he might have transferred from his date by making a Deed of Trust, the same formality must not have been completed on the date before the ex-dividend date.
The transfer ought to have been completed in the Company's register at the close of business on the working day before the ex dividend date.
So, he WILL have to take this dividend in HIS book and cannot split 50-50 as you say.
I am sure this would help.
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Warm Regards
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