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Withdrawal or amendment of dividend resolutions
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10. The Act of 2014 is amended by the insertion of the following section after section 186:
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“186A. (1) Subject to subsection (2), where the directors of a company have recommended that the declaration of a dividend be adopted by resolution at a general meeting and, subsequent to convening the meeting, the directors form the opinion that, due to the actual or perceived consequences of Covid-19 on the affairs of the company, the dividend ought to be cancelled or reduced to a particular amount, the directors may—
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(a) withdraw the resolution to approve the dividend, or
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(b) propose an amendment to that resolution to provide for a dividend less than that originally recommended.
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(2) The resolution to approve the dividend may be withdrawn or amended notwithstanding any provision to the contrary in the company’s constitution where—
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(a) all the members of the company agree in writing to such withdrawal or amendment, and
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(b) notice of the formation of the opinion of the directors referred to in subsection (1) and consequent proposed withdrawal or amendment of the resolution is given no later than 3 days before the general meeting.”.
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