---
title: Dividends when there are multiple shareholders
description: Dividends when there are multiple shareholders
---

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# Dividends when there are multiple shareholders

## Proportional dividends and alphabet shares - explained

If your company has more than one shareholder, dividends must be paid in proportion to shareholdings unless the company has different share classes.

### Proportional dividends

With a single class of ordinary shares, a dividend of £10,000 in a company with two 50% shareholders means each receives £5,000. You cannot pay different amounts to different ordinary shareholders of the same class. Doing so makes the excess amount to one shareholder an unlawful distribution.

### Alphabet shares

Companies with multiple shareholders sometimes create different classes (A shares, B shares) to allow flexibility in dividend allocation. This requires a formal restructuring of the share capital with a Companies House filing. If you want different dividend amounts for different shareholders, contact us well in advance of any payment.

💡 **Good to know:** If your spouse or partner is a shareholder in the company, they receive their proportional share of any dividend. Both of you will need to declare the dividends on your respective Self Assessment returns. We prepare both returns.

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