1. What is a first interim dividend?
A first interim dividend is the first payment which will be made by a Liquidator, to a creditor(s) whose claims have been admitted in whole or in part (admitted creditor(s).
2. Will there be a further dividend distribution?
There will be further dividend distribution(s), until a final dividend distribution is made.
3. How would an admitted creditor be informed of the date, time and place for payments to be made in a dividend distribution?
The Liquidator shall place a Notice of a Dividend Distribution in the Gazette and Newspaper(s) and shall also send a notice of dividend distribution to each admitted creditor. The Notice published in the Gazette and Newspaper will advise admitted creditors on the date, time and place for the dividend distribution.
4. What documents must an admitted creditor produce when collecting a dividend distribution?
When collecting a dividend distribution, an admitted creditor must produce the following documents:
- The Notice of Dividend which was sent to the creditor by the Liquidator.
- A valid form of national identification – Identification Card, Passport or Driver’s Permit.
- Originals of all negotiable securities or instruments for example Investment Note Certificates, Fixed Deposit Certificates and Invoices which the admitted creditor(s) holds and which formed part of his/their claim as stated in the Form 55 – Proof of Debts/General Form.
5. Can an admitted creditor(s) appoint another party to collect dividend distribution on their behalf?
If a creditor(s) cannot attend in person to collect the dividend distribution payable to them, the admitted creditor(s) must complete and sign an Authority for Delivery of Dividend which is attached to the Notice and the person collecting the dividend distribution will sign a Receipt Acknowledging Dividend. Both (payee/bearer) identification will be required for presentation. The Liquidator will, in accordance with the Authority, deliver the dividend distribution to the bearer named therein.
NOTE:
- This is an authority only to deliver the dividend distribution NOT to make it payable to another person.
- The Authority for Delivery of Dividend should, in the case of a Company, be signed and stamped in the Company’s name or in the case of a limited company signed by an officer of the company and stamped.
6. Can I have the dividend distribution payable to me transferred to a third party?
Where such a request is made, the admitted creditor together with the third party will be required to complete and sign a Form 62 – Authority to Liquidator to Pay Dividends to Another Person. The dividend distribution will then be re-issued in the name of the third party.
7. In instances where there is more than one claimant on the Form 55 – Proof of Debts/General Form, in whose name will the dividend distribution be prepared?
One dividend distribution will be made and it will be payable in the names of all the claimants as they appear in the Form 55 – Proof of Debts/General Form.
8. Where there is more than one claimant on the Form 55 – Proof of Debts/General Form is it mandatory for all the claimants to appear in person and sign to acknowledge receipt of the dividend distribution?
Either one or all the claimants in whose name the dividend distribution is payable can attend in person and sign to acknowledge receipt of the dividend distribution.
9. What do the words “amount per dollar” mean in a dividend distribution?
This is the dividend distribution rate of $x.xxx for every dollar of liability that is admitted by the Liquidator.
10. How does the Liquidator calculate the rate (amount per dollar) to be paid to the pool of admitted creditors in a dividend distribution?
The Total Cash available for a dividend distribution as at a stated date divided by the total eligible liabilities on the statement of affairs as at the same date. For example assuming the total cash available as at October 30, 20xx was $100,000.00 and the total eligible liabilities as at October 30, 20xx were $8,130,081.00 then the rate (amount per dollar) would be calculated as $100,000.00 / $8,130,081.00 = $0.0123 per dollar.
11. How does the Liquidator calculate the amount payable to each admitted creditor in a dividend distribution?
Using the example in 10 above, if an admitted creditor had an admitted claim of $200.00, then that creditor will receive an amount payable of $2.46 calculated as $200.00 x $0.0123.
12. What documents must an admitted creditor produce when collecting a second dividend distribution?
When collecting a second dividend distribution, an admitted creditor must produce the following documents:
- The Notice of Dividend which was sent to the creditor by the Liquidator.
- A valid form of national identification – Identification Card, Passport or Driver’s Permit.
- Documents which were stamped “First Dividend Distribution” dated and initialed by an Officer of the Liquidator for example all negotiable securities or instruments – Investment Note Certificates, Fixed Deposit Certificates and Invoices which the admitted creditor(s) holds and which formed part of his/their claim as stated in the Form 55 – Proof of Debts/General Form.
