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clock Created with Sketch. 08/06/18
10:54
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Originally posted by ThinkinLoudly
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I too went hunting a published dividend policy once, but alas I could not find it under any heading or possible rock. So I asked the lovely Michelle, early 2017 ...[Me] 1. The company has not and does not publish a dividend policy. Can you please advise what dividend guidelines or parameters the Board of Directors work with? [Michelle} The company board would like to reward our shareholders as much as possible. Yes, the company has a dividend policy in place since 2010, "not more than 25% free cash flow generated from the operations". The Board assessed and considered the recommendations from the management put forward for future capital expenditures and other expenditures determined the final dividend payment. sigh! sigh (2nd one this morning, very sad indeed!
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Not necessarily an accounting ruse. There are also some potential restraints on paying a franked dividend if no retained earnings even if there are franking credits available. From memory this is due to some inconsistencies between Corps Act re ability to pay dividends (i.e. the solvency test etc.) and the ability to distribute earnings with franking credits, but a tax expert might be able to confirm.
(20min delay)
