COMMERCIAL Odlins may pay div. from capital

Press, Volume CXV, Issue 33753, 28 January 1975, Page 18

COMMERCIAL Odlins may pay div. from capital

The C. and A. Odlin Timber and Hardware Company, Ltd, is the latest to swell the ranks of companies seeking to make distributions of capital in lieu of conventional dividends from profits.

Shareholders will be asked at an extraordinary general meeting on February 27 to approve an amendment to the company’s articles to that effect. At the same time they will be asked to approve the change of the company’s name to Odlins, Limited. The following resolutions will be put to them for consideration:—

(1) To approve the change of name of the company from the “The C. and A. Odlin Timber and Hardware Company Limited,’’ to “Odlins Limited.’’

(2) To approve an amendment to the articles of association of the company to enable the company to make distributions of capital from the share premium reserve account in lieu of dividends from profits. If the amendment is approved application will be made to the Supreme Court for approval of the distribution, and the company will transfer from revenue reserves to a fund to be designated “capital replacement fund” an amount equal to payments made from share premium reserve. Shareholders will be given the right of election to continue to receive dividends from profits as an alternative to a distribution from the share premium reserve.

There cannot be any doubt that “Odlins” — as the company is already known in

copimon parlance — is a more convenient handle than the old cumbersome name.

The directors also propose to change the balance date of the parent company and its subsidiaries from June 30 to March 31, and the next statement of accounts will therefore be for the nine month period ending March 31. Approval to the change has been received from the Inland Revenue Department. The interim dividend for the, six months to December

31 will be paid at the rate of 5 per cent, in May. “As indicated when the new issue of shares was offered to shareholders last year, this payment will be made prior to May 31, which is the due date for payment of the final instalment of 30c a share on the new issue shares,” the directors say. They expect that results for the half year to December 31 will be available for the extraordinary general meeting, and an indication will be given then of the rate of final dividend for the nine-months period to March 31. This payment will be made in September, in which! month the annual general I meeting of shareholders will be held.

New issue shareholders will receive the full final dividend declared for the inine months.