Difference between revisions of "Investor Share Dividends"

Revision as of 12:26, 8 February 2014

The Investor Share Dividend is the amount of money distributed as dividends (i.e. patronage refunds) to Investor Shareholders in a FairShares Company. In a FairShares Co-operative this amount is issued to members as Investor Shares and is not paid out as dividends.

The amount is calculated as the lowest of the following:

i) that which may be paid by law
ii) [Investor Share] x (1 - [Capital Gain Fraction])
iii) the balance of the profit and loss account, if greater than zero;

Otherwise it is zero. The Capital Gain Fraction is defined in Clause 15.

Dividends must be paid within 6 months of the end of the accounting period, after which time interest will accumulate on unpaid dividends.

In a FairShares Company, Directors can offer additional Investor Shares instead of some or all of the dividend (see Clause 45).

Return to the FairShares Glossary.