How does dividend equalisation work? Paying dividend equalisation

The dividend equalisation works on the basis of whether a creditor was included at all in any previous dividends.

If a creditor has received any amount in any of the previous dividends then they will not be included in a dividend equalisation.

If there has been a dividend of 15c in the dollar (or 15p in the £) paid and then another dividend of 20c is declared the equalisation works as follows:

1st Dividend: 15c

2nd Dividend: 20c

	1st Dividend	2nd Dividend	Comments
Creditor A	15c	20c
Creditor B	10c	20c	If the creditor has received a payment (not a dividend) or has an increased claim the distribution for the second dividend will not have any equalisation
Creditor C	-	35c	All dividends combined

If you want to ‘equalise’ the amount received by a creditor who may have an updated claims where a creditor has previously received a payment or dividend that is less than what they would have otherwise received if the dividend was calculated on their final claim then you need to pay a manual dividend to that creditor.

To pay an equalisation select the "Equalise Claims to" option and select the c/$ to equalise all claims to.

If you want to pay a separate equalisation dividend, then filter the creditor register to exclude creditors that have already received a dividend (see attached screenshot).

Note: that if you have increased a creditor claim after the first dividend then the equalisation will pick the extra dividend on the incremental change.