FCL helps shareholders

Press, 12 July 1984, Page 32

FCL helps shareholders

PA Auckland Fletcher Challenge, Ltd, has taken advantage of recent legislation to help shareholders boost their tax-free income. An extraordinary meeting of shareholders in Auckland yesterday passed a resolution enabling them to choose between different classes of capital profits, revenue profits, or a mix of capital and revenue profits for dividend payment. The classes of capital profits include realised capital profits, share premium account, capital reserves, or other extraordinary profits of a capital nature.

Previously the article allowed shareholders to elect to receive dividends from

either capital profits or revenue profits, but not from nominated classes of capital profits. The chairman, Mr R. R. Trotter, told the meeting that different types of shareholder — individuals, trust funds, life companies and overseas investors — had different tax requirements. The availability of various options for dividend payment could help to maximise the income of all groups. He said the change could also be reflected in the company’s share price, giving investors a share benefit as well. Mr Trotter did not discount the fact that tax laws could be amended.