What are they?

The court of appeal case of Global Corporate v Hale has set a new precedent in the treatment of director salaries and what constitutes an illegal dividend.

The case carries an important message for directors to consider as well as their accountants in how they treat monies drawn from limited companies across the financial year.

It also provides a useful framework when considering the following questions:

What are illegal dividends?

Who decides?

What can be done to prevent this situation arising?