2 Nov 2006

New dividend policy approved in PNG for East New Britain Development Corp

10:52 am on 2 November 2006

A new dividend policy has been approved in Papua New Guinea for the East New Britain Development Corporation - the business arm of the provincial government .

The new policy will cover it and its subsidiary companies and minority shareholding investments in other companies.

The Provincial chairman for Commerce, Industry and Tourism, Tiolam Wawaga, told the Post Courier that this new policy will see all subsidiaries of ENBDC pay dividend at the rate of 50 per cent of their after tax profits.

He says this new dividend rate will help ENBDC cover its management operational costs and also pursue investment opportunities.

He says the other 50 percent of after tax profits would be kept by the subsidiary business to meet operation costs and also to encourage the business to increase its current operations.

Mr Wawaga says that all the dividends declared by companies that ENBDC holds minority shares in, would be held by them and would form part of the annual account.

He said ENBDC would in return pay annual dividends at 50 percent of the after tax profit to its shareholders.