Dividend in Specie Example​

This type of resolution is generally proposed during a company's general meeting and requires a simple majority to be passed. It allows companies to distribute surplus assets or specific items without the need to liquidate them into cash first, providing a flexible means of returning value to shareholders.

The asset distribution could range from property and equipment to shares in another company. This resolution is often used when a company aims to optimize its asset base or restructure its holdings, potentially offering tax advantages to both the company and its shareholders.