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LONDON (Alliance News) - Fashion retailer Next PLC on Tuesday said it will convene a shareholder meeting to address a situation related to its special dividend payments which has meant it has infringed the UK Companies Act 2006.
Next said the payment of its special dividend in February 2014, its interim dividend in January 2015 and its special dividend in February 2015 were the payouts which violated rules.
Next said the payment of the dividends must be preceded by the company filing its accounts to illustrate its ability to pay the dividends prior to the actual payout being made. This did not happen in time, meaning the group has infringed the act.
Next noted it did have sufficient reserves to cover the distributions and said the infringement does not effect its currently financial outlook, nor will it result in any fines being paid.
It will hold a meeting on February 10 to address the situation.
Shares in Next were up 1.7% to 6,760.00 pence Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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