30 cents a share !, page-17

"Below is a copy of how it all works (yet, I am still confused!) from the ASX website:"

I have noticed some confusion about the three dates, that has increased since online trading took hold.

I will try to clear the fog. This is how it works in practice;

The only date that concerns ordinary shareholders is the EX-dividend date.

The record date is a bit of a hang-over from the old chalkie days really. It is the date on which the company closes its books. To establish who is entitled to the dividend, but read on....

What used to happen before electronics took over was that a buyer might buy his shares before the ex-dividend date, but his broker might mess up the paperwork and fail to advise the company register in time. Ie. before the record date. When that happened the broker himself would have to pay the dividend to the correct person, out of his own funds. Oooh wah..

The record date was really the date upon which the company said to brokers; "get your backsides in to gear, the books door closes on - the record date.

In this electronic age, such events would be unknown, so the record date has no real relevance anymore. Except perhaps for the company which can effectively get on with its business of allocating the dividend without interference from outside.