Privatised water clusterflick.

[carmanmemoranda]

Instead of being rude and insulting, you could post your knowledge - if you have any.

Section 830 of the company's act confirms Mottie is correct. Of course a parent company which makes a profit, may well pay a dividend. Dividend Recaps are not straight forward in UK corporate and tax law.

Do you know what happens if your company pays its share holders more in dividends than are available from profits? Perhaps you could explain the legal implications of a dividend recap, in the UK if it makes the company insolvent? Or the tax treatment of such income?

Do you agree with dividends being paid out when the company is being run so obviously badly ?

 

[Notch7]

Dividends can only come from profits. Just because they borrowed money, it doesn’t mean there will be no profits otherwise companies would all be borrowing money, having no 'profits' and paying no corporation tax.

View attachment 334839

If Thames water is making profit, how come it’s on the brink of bankruptcy

 

[motorbiking]

Do you agree with dividends being paid out when the company is being run so obviously badly ?

It depends. A struggling company would struggle more if investors ditched it.

 

[carmanmemoranda]

It depends. A struggling company would struggle more if investors ditched it.

Surely dividends should be paid for good performance.

Nothing else

If the performance isn't good, change the performers

 

[motorbiking]

If Thames water is making profit, how come it’s on the brink of bankruptcy

maybe have a look at the structure.

Our governance | Governance and Legal | About Us | Thames Water

Learn more about our ownership structure, external shareholders and where to find the Company's Articles of Association.

www.thameswater.co.uk

 

[SirGalahad]

US source - clearly and relevant to PE firm not a public listed company.

Again - do you know the answers?

This better.

https://uk.practicallaw.thomsonreuters.com/w-016-2651?transitionType=Default&contextData=(sc.Default)&firstPage=true

You really have no clue. Talking about profits - your a supposed lawyer. Feel sorry for your clients.

 

[SirGalahad]

Surely dividends should be paid for good performance.

Nothing else

If the performance isn't good, change the performers

Wrong - special dividends. Dividend recap.

Its the usual clueless crew - dog breath tory voters trying to defend this chicanery.

They need us more than we need them.

 

[JohnD]

It depends. A struggling company would struggle more if investors ditched it.

The share price has no effect on the profitability or revenue of the company.

 

[motorbiking]

Surely dividends should be paid for good performance.

Nothing else

If the performance isn't good, change the performers

I have held plenty of extremely well performing stocks who do not pay a dividend.

Divideds are just another lever to secure investment.

This better.

https://uk.practicallaw.thomsonreuters.com/w-016-2651?transitionType=Default&contextData=(sc.Default)&firstPage=true

You really have no clue. Talking about profits - your a supposed lawyer. Feel sorry for your clients.

Forgive me, I thought you were an expert, I didn't realise you needed to google it.

I think it's you who has no clue, if you don't understand the implications of debt recaps on public limited companies or issuing dividend in excess of profits without properly ring fencing the issuer. Thames water understood it.

 

[SirGalahad]

Here is a nice explanation on FT.

Thames Water owners pile group with debt

Shareholders structured a £500mn cash injection as a loan charging 8% interest

www.ft.com

 

[motorbiking]

The share price has no effect on the profitability or revenue of the company.

nonsense. You might want to think that through before you embarrass yourself.. again.

hint: How does the costs of financing debt impact profitability and how does the value of the company affect its ability to raise such finance?

 

[carmanmemoranda]

I have held plenty of extremely well performing stocks who do not pay a dividend.

Divideds are just another lever to secure investment.

And you think thats a good investment.

Ok

 

[SirGalahad]

This is the structure of Thames Water.

lol

 

[SirGalahad]

I have held plenty of extremely well performing stocks who do not pay a dividend.

Divideds are just another lever to secure investment.
Forgive me, I thought you were an expert, I didn't realise you needed to google it.

I think it's you who has no clue, if you don't understand the implications of debt recaps on public limited companies or issuing dividend in excess of profits without property ring fencing the issuer. Thames water understood it.

Now tell me which public limited company you are talking about. Clueless as usual. You really are a dogs breakfast.

 

[motorbiking]

And you think thats a good investment.

Ok

Perhaps I don't want dividends, perhaps I want capital growth. Perhaps I pay a lot in income tax and prefer capital gains.