In specie transactions may involve either physical assets or financial assets. Companies or individuals might transfer ownership of land, equipment, or inventory in their actual forms rather than paying cash. ... For example, a company may distribute shares of stock to investors as a dividend when cash is in short supply.

What does dividend in specie mean?

A Dividend in Specie is a dividend which is satisfied in assets as opposed to cash. You may wish to transfer property, equipment or other assets to your shareholders instead of, or, as well as a cash asset. There are various aspects that your board of Directors will need to consider. Here are a few common ones:- 1.

Who is liable for dividend in specie?

A company that declares and pays a dividend that constitutes a distribution of an asset in specie is liable for the dividends tax at a reduced rate in respect of that portion of the dividend that constitutes the distribution of an asset in specie if the person to whom the payment is made has, by the date of payment, ...