understanding Composites & MSC's

insurgentes

I'm trying to get my head around the old composite companies/MSC's pre 2007 budget.
The company i'm trying to understand is private ltd, Registered address UK, Contact Address Isle of Man, Director and Secretary Gibralter. I am trying to find out how dividends paid to uk based contractors from this company would be recorded with HMRC. I assume a dividend voucher would be issued to each shareholder, but are tax credits also attached to that, as the company is based in the isle of man? Also would the contractor who was classed as an employee/shareholder of this company be responsible for declaring the dividend payments to HMRC? The way i understand it, is that a contractor became a shareholder of composite company/MSC and was also an employee. The employee would then have the MSC invoice the agency for their work. The contractor would then be paid minimum wage as employee of the MSC and then receive the rest of the income earned as a dividend.
Would the tax credit associated with each dividend voucher be reported to HMRC for each shareholder, or is it up to the shareholder to record the dividends received in their tax returns. or does neither happen and the dividend voucher only remains a record that tax has been paid if HMRC investigate the employee/shareholder. I hope someone understands what i am going on about.