A final dividend is a dividend declared at the company's annual general meeting (AGM) upon the recommendation of the company’s directors. It represents the distribution of profits that is subject to shareholders' approval and appears as a current liability on the balance sheet until paid.
Under the Articles of Association of most UK companies, one-third of the directors must retire each year, ensuring that each director steps down every three years. This allows retiring directors the opportunity to be re-elected, fostering continuity and fresh perspectives.
