Difference between revisions of "Investor Share Dividends"
From FairShares Wiki 3.x
m |
m |
||
| Line 1: | Line 1: | ||
| − | 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 | + | 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: | The amount is calculated as the lowest of the following: | ||
| Line 9: | Line 9: | ||
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. | ||
| − | Dividends must be paid within 6 months of the end of the accounting period, after which time interest will accumulate on unpaid | + | Dividends (Interest) must be paid within 6 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). | In a [[FairShares Company]], Directors can offer additional [[Investor Shares]] instead of some or all of the dividend (see Clause 45). | ||
Revision as of 02:17, 20 May 2015
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 6 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).
Return to the FairShares Glossary.
