NOTES TO THE FINANCIAL STATEMENTS
24. Equity://
24.1 Transactions with owners Dividends
Vector’s final dividend for the year ended 30 June 2016 of 8.00 cents per share was paid on 15 September 2016, with a supplementary dividend of $0.5 million (equating to 1.41 cents per non-resident share). The interim dividend for the current year of 8.00 cents per share was paid on 13 April 2017, with a supplementary dividend of $0.5 million (equating to 1.41 cents per non-resident share). Both dividends were fully imputed, and gave rise to foreign investor tax credits equal to the amount of supplementary dividend paid. Vector recognises dividends as a payable in the financial statements on the date the dividend is declared. The total number of authorised and issued shares is 1,000,000,000 (2016: 1,000,000,000). All ordinary issued shares are fully paid, have no par value and carry equal voting rights and equal rights to a surplus on winding up of the parent. At balance date 4,354,013 shares (2016: 4,340,052) are held as treasury shares of which 109,090 (2016: 95,129) are allocated to the employee share purchase scheme. Vector’s objectives in managing capital are: —— To safeguard the ability of entities within the group to continue as a going concern; —— To provide an adequate return to shareholders by pricing products and services commensurate with the level of risk; and —— Maintain an investment grade credit rating. Vector manages and may adjust its capital structure in light of changes in economic conditions and for the risk characteristics of the underlying assets. To achieve this Vector may: —— Adjust its dividend policy; —— Return capital to shareholders; —— Issue new shares; or —— Sell assets to reduce debt. Vector primarily monitors capital on the basis of the gearing ratio.
Shares
24.2 Capital Management Policies
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