Difference between revisions of "Investor Share Dividends"
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The amount is calculated as the lowest of the following: | The amount is calculated as the lowest of the following: | ||
| − | + | # that which may be paid by law | |
| − | + | # [[Investor Share]] x (1 - [[Capital Gain Fraction]]) | |
| − | + | # 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. | Otherwise it is zero. The [[Capital Gain Fraction]] is defined in Clause 15. | ||
Revision as of 12:27, 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:
- that which may be paid by law
- Investor Share x (1 - Capital Gain Fraction)
- 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.
