Tax may affect choice of extra remuneration or dividends

Assoc Prof (Practice) Simon Poh from the Dept of Accounting at NUS Business School noted that as a company closes its accounts near the end of the year, it has to decide on payment of extra remuneration and/or dividends to its employees and shareholders. He opined that from a corporate governance standpoint, it is true that for listed companies, controlling shareholders will generally prefer to receive remuneration than dividends, given the stakes that they hold in companies.

• The Business Times, 4 January 2018, p23