A dividend means that a limited company distributes part of its profit to its shareholders. How much each owner receives depends on the number of shares and the share class — some preference shares have priority, for example.
A dividend is decided by the general meeting, usually on the board's proposal, and must fit within the company's unrestricted equity under the Companies Act. A correct shareholder register ensures the right owners receive the right amount.
A dividend proposal is the board's proposal to the general meeting on how large a dividend to pay.
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Unrestricted equity is the part of equity that may be distributed to shareholders.
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A shareholder is a person or company that owns one or more shares in a limited company.
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