IFA firm Cavanagh Group may soon be in a position to deliver dividends to shareholders after the High Court of Justice approved the company's share premium account cancellation.
The closure of the £3,846,947 account enables Cavanagh to eliminate its historical profit and loss deficit, making room for possible dividend payments.
Cavanagh previously stated the cancellation would help the company “create distributable reserves and, when the directors consider it appropriate, to make a distribution to shareholders”.
The High Court approved the move on 25 June and the cancellation was registered on 2 July.
Cavanagh says the move does not affect the voting or dividend rights or the rights on a return of capital of shareholders.IFAonline
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