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.
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