Difference between revisions of "Investor Share Dividends"

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(Investor Share Dividends page - create)
 
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The amount is calculated as the lowest of the following:
 
The amount is calculated as the lowest of the following:
  
i) that which may be paid by law
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# that which may be paid by law
ii) [Investor Share] x (1 - [Capital Gain Fraction])
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# [[Investor Share]] x (1 - [[Capital Gain Fraction]])
iii) the balance of the profit and loss account, if greater than zero;
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# 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 11:27, 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:

  1. that which may be paid by law
  2. Investor Share x (1 - Capital Gain Fraction)
  3. 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.