South Africa Law

Get your South African law questions answered by Experts

Ask a Lawyer,
Get an Answer ASAP!

I am a partner in a small company (33% ) .I no longer work…

Customer Question
I am a partner in...
I am a partner in a small company (33% ) .I no longer work but the other two partners
still do. They are also 33% shareholders in the company. They recently informed me that
as I no longer work , they will not pay me my 'full' dividend but only about 16%.
Is this permissible by law. Upto now we have each been taking a third of the amount
allocated to dividends.
Submitted: 2 years ago.Category: South Africa Law
Show More
Show Less
Ask Your Own South Africa Law Question
Answered in 19 minutes by:
1/22/2016
Lawyer: Freddie Lombard, Attorney replied 2 years ago
Freddie Lombard
Freddie Lombard, Attorney
Category: South Africa Law
Satisfied Customers: 2,803
Experience: Practicing attorney and conveyancer with 16 years post article experience.
Verified

Hi there

Thank you for your question. I will try to assist you in answering it today but please feel free to ask as many follow up questions as you like until you are 100% satisfied.

A dividend is the portion of the profit of a company that the directors decide to pay out to the shareholders and they cannot decide to pay one shareholder more than another. It is paid in accordance to the shareholding. In other words pro rata per share.

Employees of the company is not paid in dividends but they are paid a salary, therefore the partners who are still working and contributing towards the company should be paid a salary which is decided by the directors of the company.

The profit that is to be paid out as dividends is then only calculated once the expenses including the salaries have been deducted.

I hope this answered your question.

I know it will take an extra minute of your time to rate my service, but if you do not rate it, I do not get paid by the website so I would really appreciate it if you would be so kind as to rate my service positively. Feel free to ask further question here on this topic at no extra cost if you need more information.

Regards

Ask Your Own South Africa Law Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Freddie Lombard Your Own Question
Freddie Lombard
Freddie Lombard
Freddie Lombard, Attorney
Category: South Africa Law
Satisfied Customers: 2,803
2,803 Satisfied Customers
Experience: Practicing attorney and conveyancer with 16 years post article experience.

Freddie Lombard is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

PHINEAS MOTAUNG

PHINEAS MOTAUNG

Attorney

113 satisfied customers

BACHELOR OF LAWS

Emil

Emil

Attorney

33 satisfied customers

BCom Law LLB, 3 years post article experience as attorney

LCP

LCP

Attorney

21 satisfied customers

BCom (Stell) LLB LLM

Freddie Lombard

Freddie Lombard

Attorney

2,803 satisfied customers

Practicing attorney and conveyancer with 16 years post article experience.

Shaie Zindel

Shaie Zindel

Attorney

1,249 satisfied customers

All areas of commercial and contract Law - specialist in property advice.

inciteadvisor

inciteadvisor

Commercial Lawyer

814 satisfied customers

B.Com LLB Registered Corporate lawywer

Christiaan K

Christiaan K

218 satisfied customers

Attorney & Director at Lombard Kotze Incorporated

< Previous | Next >

Related South Africa Law Questions
Does 276(1)(i) sentence work for foreigners with kids in the
Hello, does 276(1)(i) sentence work for foreigners with kids in the country? Please advise thanks… read more
Freddie Lombard
Freddie Lombard
Attorney
2,803 satisfied customers
I am a US citizen married to a South African We own a farm
I am a US citizen married to a South African We own a farm in South Africa that we registered in my wife's name … read more
CaseLaw
CaseLaw
Attorney
Bachelor's Degree
785 satisfied customers
I am the owner of an apartment that I rent out. Last year, I
Hi, I am the owner of an apartment that I rent out. Last year, I advertise it on Gumtree and this guy from EL expressed an interest.He wanted my banking details, and to make long story short made two … read more
Freddie Lombard
Freddie Lombard
Attorney
2,803 satisfied customers
I am a pensioner and my daughter stays in a flat that I own.
Hi, I am a pensioner and my daughter stays in a flat that I own. After her electricity was cut off, we started investigating. Although we never get any invoices, she pays an amount every month (R500 o… read more
Freddie Lombard
Freddie Lombard
Attorney
2,803 satisfied customers
I was involved in reckless driving and damaged 3 parked
I was involved in drunken reckless driving and damaged 3 parked cars. No bload drawn no breath test. First offense. I am charged with drunken reckless driving. Do I get jail time. I am willing to pay … read more
CaseLaw
CaseLaw
Attorney
Bachelor's Degree
785 satisfied customers
A few years ago i applied for a bond on a propery and
good eveningA few years ago i applied for a bond on a propery and instrucertd the attorney to register title deed on my late dads and my name.We were called to the attorneys office and i signed a docu… read more
CaseLaw
CaseLaw
Attorney
Bachelor's Degree
785 satisfied customers
I am due to attend a disciplinary hearing being instituted
I am due to attend a disciplinary hearing being instituted against a lawyer by the law society based on allegations of misconduct from me. do i need legal representation?… read more
Freddie Lombard
Freddie Lombard
Attorney
2,803 satisfied customers
I've bought a property and transfer should have been 1 June.
I've bought a property and transfer should have been 1 June. The sellers attorneys are not coming to the party. The attorney I'm using for my sale has sent them everything needed, including the guarantees. They've emailed, called and left messages, but has yet to hear from them. Her last email to them was yesterday, she included the seller. I've called and they haven't got back to me either. What can be done?Kind Regards Caroline … read more
CaseLaw
CaseLaw
Attorney
Bachelor's Degree
785 satisfied customers
An interesting question. I am married in community of
Pearl hi. MY Name is***** interesting question. I am married in community of property, I have a business in town and it trades as Pitstop Bottle Store but is registered under a close corporation. I am… read more
CaseLaw
CaseLaw
Attorney
Bachelor's Degree
785 satisfied customers
Morning.I have signed a contract with VHI on the 14th.After
Morning.I have signed a contract with VHI on the 14th.After reading the contract I realized that nothing they said corresponded.I want to cancel today .My concern is the cancellation fees charged will… read more
Freddie Lombard
Freddie Lombard
Attorney
2,803 satisfied customers
I paid an accounting and auditing company in Cape Town,
I paid an accounting and auditing company in Cape Town, South Africa to do my Close Corporation's books and prepare balance sheets as well as Tax submissions. This was done for 2 consecutive years. Ea… read more
Freddie Lombard
Freddie Lombard
Attorney
2,803 satisfied customers
If I'm married cop..an want a divorce..but my husband signed
If I'm married cop..an want a divorce..but my husband signed a document as a non contributer can he claim on my home which I pay the bond myself … read more
CaseLaw
CaseLaw
Attorney
Bachelor's Degree
785 satisfied customers
My company was issued with a letter of demand section 345
Hi there. My company was issued with a letter of demand section 345 today from a company we supplied a machine too. We are in no way in debt to them. We sold them a machine and they say it cannot do w… read more
Freddie Lombard
Freddie Lombard
Attorney
2,803 satisfied customers
Hendrik herei got a question. Our church sold a part of its
hi Hendrik herei got a question. Our church sold a part of its erf to an non profit company in. 2007, for R800 000. The purchaser had to ensure the sub division took place. The money was paid in 2008,… read more
CaseLaw
CaseLaw
Attorney
Bachelor's Degree
785 satisfied customers
I have Malaysian citizenship and am a US card holder. Am I
Hi! I have Malaysian citizenship and am a US green card holder. Am I permitted to work in Africa? Assuming I had a job offer with the appropriate work permits and visas?… read more
Freddie Lombard
Freddie Lombard
Attorney
2,803 satisfied customers
KZN South Africa, I received an email messagefrom my
I received an email messagefrom my landlord on the 5th of June informing me that my lease expired on 31st of May and that I am to vacate my flat on the 31st of July.He wants to make the premises available for his sister, who rents (from him) in the same block as me but can't afford the rental on her flat (the rent on mine is much cheaper).Am I correct in understanding that he is legally obliged to give me a minimum of 60 days notice and that I don't have to leave until the 4th of August.The reason I ask is that I intend to request that he let me stay until 31 August and I'm considering using the extra 4 days as a bargaining tool should he refuse. Thanks Garry … read more
Christiaan K
Christiaan K
LLB
218 satisfied customers
I am a Zimbabwean residing outside Zimbabwe and am married
I am a Zimbabwean residing outside Zimbabwe and am married to a Zimbabwean also resident outside Zimbabwe but in a different country. I married my wife for companionship and efforts to stay together h… read more
Freddie Lombard
Freddie Lombard
Attorney
2,803 satisfied customers
I want to file for divorce but i do not know the where
Hi. I want to file for divorce but i do not know the where abouts of the spouse, so how do i go about that "stressed" … read more
Christiaan K
Christiaan K
LLB
218 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x