Automodular Dividend Policy
Effective August 10, 2011 Automodular resumed the payment of regular dividends at a rate of $0.05 per share. Automodular also pays special dividends from time to time if cash surpluses grow beyond reasonably forecasted needs.
At its January 19, 2012 board meeting, the Board of Directors increased the regular quarterly dividend to $0.06 per common share.
The Board of Directors reviews the payment of dividends on a quarterly basis in conjunction with its review of the Company’s quarterly financial results. Any and all dividends are declared at the discretion of the Board of Directors.
In light of the closure of the Oakville operations and ongoing diversification efforts, the Board of Directors elected not to declare a dividend in the fourth quarter of 2014 and has not declared one since. The Company will continue to revisit its dividend policy in conjunction with its go forward plans on a quarterly basis and will update its shareholders accordingly.
Canadian Tax Information – Eligible Dividend
For purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation, unless stated otherwise, all dividends on common shares paid by Automodular Corporation to Canadian residents are designated as “eligible dividends”.