• Section 9: Section 9: Declaration and Payment of Dividends

    • Article 149H - Notice of proposed dividend

      (1) Before declaring a dividend, an officeholder must give notice of his intention to do so to all creditors whose addresses are known to him and who have not proved their debts.
      (2) Such notice must:
      (A) specify a date, not less than 21 days from the date of that notice, up to which proofs may be lodged;
      (B) specify whether the proposed dividend is interim or final; and
      (C) state that it is the intention of the officeholder to declare a dividend within the period of two months from the date specified under (B).

    • Article 149I - Declaration of dividend

      (1) Subject to (2), within the two month period stated in Article 149H(2)(C), the officeholder shall proceed to declare the dividend to one or more classes of creditor of which he gave notice.
      (2) Except with the permission of the QFC Court, the officeholder shall not declare a dividend so long as there is pending any application to the QFC Court to reverse or vary a decision of his on a proof, or to expunge a proof or to reduce the amount claimed.
      (3) If the QFC Court gives permission under (2), the officeholder must make such provision in respect of the proof in question as the QFC Court directs.

    • Article 149J - Notice of declaration of a dividend

      (1) Where an officeholder declares a dividend he shall give notice of that fact to all creditors who have proved their debts.
      (2) The notice shall include the following particulars relating to the administration or Liquidation as appropriate:
      (A) amounts raised from the sale of assets, indicating (so far as practicable) amounts raised by the sale of particular assets;
      (B) payments made by the officeholder when acting as such;
      (C) where the officeholder proposed to make a distribution to unsecured creditors, the value of the prescribed part;
      (D) provision (if any) made for unsettled claims, and funds (if any) retained for particular purposes;
      (E) the total amount of dividend and the rate of dividend; or
      (F) whether, and if so when, any further dividend is expected to be declared.

    • Article 149K - Payment of dividend

      (1) The dividend may be distributed simultaneously with the notice declaring it.
      (2) Payment of dividend may be made by post, or arrangements may be made with any creditor for it to be paid to him in another way, or held for his collection.
      (3) Where a dividend is paid on a bill of exchange or other negotiable instrument, the amount of the dividend shall be endorsed on the instrument, or on a certified copy of it, if required to be produced by the holder for that purpose.

    • Article 149L - Notice of no, or no further, dividend

      If the officeholder gives notice to creditors that he is unable to declare any dividend or (as the case may be) any further dividend, the notice shall contain a statement to the effect either:

      (A) that no funds have been realised; or
      (B) that the funds realised have already been distributed or used or allocated for defraying the expenses of administration or Liquidation as the case may be.