I.W.-Dow tax-free payment requested

Press, 5 December 1978, Page 23

I.W.-Dow tax-free payment requested

Ivon Watkins-Dow, Ltd, could be paying a higher percentage of its 1979 dividend from tax-free sources, because of a decision by its biggest shareholder. In December 1975 the I.W.D. share premium account, which then amounted to $1,437.00, became available for distribution in lieu of dividends from trading profits. From that time Dow Chemical A.G.. which holds 51 per cent of the paid capital of 1.W.D., elected to take dividends from profits thus assisting in maximising the amount of tax free dividends available to individual shareholders. Dow Chemical has now advised I.W.D. that because

lof United States tax law it has cancelled its present dividend election notice, and has requested that dividends paid to it in 1979 be from t' e share premium account. When the I.W.D. interim dividend was paid on Octo|ber 2, 1978, 37 per cent of ; the total sum was paid from j the share premium account. | The. immediate effect of (Dow Chemical’s decision is to increase this percentage to 88 per cent, and to accelerate the rate at which the share premium account will be depleted. As at November 30, 1978, the amount availab’e for distribution from share premium account was $950,000, and the total paid capital stood at $3,370,000 in 50c