Clarification of Dividend Rules in Companies Bill
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.