New South Wales Consolidated Acts

STATE OWNED CORPORATIONS ACT 1989 - SECT 20S

20S Dividends

(1) A statutory SOC is to have a share dividend scheme, as provided in its constitution, in a form approved by the Treasurer.

(2) The board of a statutory SOC and the voting shareholders may agree that payments required to be made by the SOC or any of its subsidiaries in respect of dividends will be applied in the purchase of shares by shareholders in the SOC.

(3) If any such payments are applied in the purchase of shares, the payments may be appropriated for that purpose without being paid into the Consolidated Fund.

(4) Otherwise, dividends declared for a statutory SOC or any of its subsidiaries and payable to voting shareholders are to be paid to the Treasurer on behalf of the State for payment into the Consolidated Fund.

(5) Nothing in this section affects the operation of section 59B of the Public Finance and Audit Act 1983 in relation to statutory SOCs. However, if the Treasurer requires a statutory SOC to pay an amount by way of dividend under that section, the Treasurer must, within one month after notifying the SOC of that requirement, publish a notice in the Gazette setting out:

(a) the amount of the dividend to be paid, and

(b) the reasons for requiring the payment to be made under that section rather than pursuant to the share dividend scheme under this section.