>>510788121 (OP)Now then kids, this is one important difference between UK Law and US Law.
In the US your responsibility as a director is to the fiduciary of the shareholders.
In the UK your responsibility is to the good of the company. These 2 are not the same.
Imagine you are in the UK, and 100% of your shareholders demand a very high dividend. You are a seasoned director know paying such a high dividend is unwise. Next year you may need those reserves. Perhaps you already have a clue that trading will not be so good in future. Or maybe you know you will soon need to buy new plant and equipment. In the UK the right thing to do as a director is to tell 100% of your shareholders to get fucked. No maximum dividend for you, you’ll have to cope with a more modest one. Even if those shareholders then vote to remove you.
Now then consider the water company boss woman. CEO of the year and loved by the FT. She borrowed money to pay dividends that shouldn’t have been paid. She was not acting in accordance with company law, in the interest of the company. She was pandering to shareholders.
OK in USA, but not in UK. Here endeth the lesson.