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:

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 (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).

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