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UK-based oil company BP was under pressure to reduce or omit dividends on its ordinary shares as a result of a major oil spill from

UK-based oil company BP was under pressure to reduce or omit dividends on its ordinary shares as a result of a major oil spill from one of its exploration wells in the Gulf of Mexico. Subsequently, BP announced that it would omit some of its quarterly dividend payments. Explain why the reduction in, or omission of, BP's dividends may harm its shareholders.

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