View source for Investor Share Dividends

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 Share Interest 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 (Interest) must be paid within six months of the end of the accounting period, after which time additional interest will accumulate on the unpaid amount.

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


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Return to the [[FairShares Glossary]].