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Universal Credit, Ltd Company Director

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Comments

  • ader42
    ader42 Posts: 328 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    The shares are the asset that would appear to be deprived of if given up.

    The shares facilitate the dividend payment and thereby do have value and are not worthless.

    I wouldn’t know how a DM would calculate the value for example of a share in the company that resulted in dividend payments of £x per annum, perhaps £x * n? I wonder how much OP would sell the shares back to the company for? 


  • DullGreyGuy
    DullGreyGuy Posts: 18,613 Forumite
    10,000 Posts Second Anniversary Name Dropper
    ader42 said:
    The shares are the asset that would appear to be deprived of if given up.

    The shares facilitate the dividend payment and thereby do have value and are not worthless.

    I wouldn’t know how a DM would calculate the value for example of a share in the company that resulted in dividend payments of £x per annum, perhaps £x * n? I wonder how much OP would sell the shares back to the company for? 
    Valuation of a company, which is what share value is, is more complex than simply a multiple of the annual dividends. It typically considers future potential not just past performance. 

    The issue is that the OP wouldn't be simply selling the shares but asking for an increase in salary at the same time to compensate for the loss of dividends
  • Yamor
    Yamor Posts: 652 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    For benefit purposes, what matters is the market value of the shares.
    The market value of a minority shareholding of alphabet shares in a company where almost the entire real value of the company is in the personal skills of the majority shareholder is almost certain to be virtually nil.
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