Community Scoop
Network

Clarification of Dividend Rules in Companies Bill

Press Release – Office of the Clerk

Have your say on the Companies (Clarification of Dividend Rules in Companies) Amendment Bill The Primary Production Committee is now seeking public submissions on a bill that would make a small technical amendment to the Companies Act 1993. The Companies …Have your say on the Companies (Clarification of Dividend Rules in Companies) Amendment Bill

The Primary Production Committee is now seeking public submissions on a bill that would make a small technical amendment to the Companies Act 1993.

The Companies (Clarification of Dividend Rules in Companies) Amendment Bill would clarify the dividend rules outlined in sections 36 and 53 of the Companies Act. It aims to create certainty about the ability of a company constitution to provide for “dry shares”, which are shares that do not carry dividend rights in certain circumstances.

The bill would make it clear that the constitution of a company can provide for shares in the same class to carry different entitlements to dividends in different circumstances—for example, where the holder of shares no longer supplies a company.

Tell the Primary Production Committee what you think
Send your submission on the bill by midnight on Thursday 27 September 2018.

For more details about the bill:
Read the contents of the bill
Get more details about the bill
ENDS

Content Sourced from scoop.co.nz
Original url