Member-only story
Dividend policy
Limited Company Growth
Apart from conflict of interest between shareholders and company management, Limited company growth also stems from a flawed dividend policy
Introduction
Today, I would like to share with you on how to address the issue of limited company growth resulting from dividend policy, while also considering a related challenge: the conflict of interest between shareholders and company management.
First, a dividend policy is the framework a company uses to determine what portion of its profits will be distributed to shareholders versus what will be retained for investment and corporate development.
The problem of limited growth arises when a company distributes a large share of its profits as dividends, rather than retaining funds to expand the business, acquire equipment, launch new projects, or upgrade technology. This can prevent the company from capitalizing on investment opportunities, thereby undermining its long-term growth.
To resolve the issue of limited company growth, management should effectively implement the following measures:
#1. Establish a dividend policy that considers company growth
