Dividend limitation

Updated: Aug 20, 2021

During the incomes policy in Britain, and at other times when wages have been ‘frozen’ in the interests of controlling inflation, the government also imposed a dividend limitation. In 1969 total ordinary dividends in respect of company account years were limited to not more than 3½ per cent above the amount declared for the previous year.

Reference: The Penguin Dictionary of Economics, 3rd edt.

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