🇦🇺Australia

Fehlentscheidungen bei Ausschüttungspolitik und Konzernfinanzierung

Updated: Feb 20262 verified sources

Definition

Australian law governing dividends is complex: under Corporations Act s254T, a company must not pay a dividend unless it meets specific asset, profit and solvency tests, and directors must be satisfied that the company will remain solvent after the payment.[3] Law firms emphasise that, if these conditions are not met, payments may be treated as unauthorised returns of capital, may not be frankable, and can expose directors to liability.[3] In holding company structures, the board often sets dividend policy based on consolidated expectations, but the legal tests apply on an entity‑by‑entity basis, not on group consolidation.[3] When dividend receipt and on‑payment data is processed in silos (subsidiary ledgers, spreadsheets, manual journals), the holding company board may over‑estimate available profits or franking credits, or misjudge cash coverage and upcoming obligations. This can lead to: (i) over‑distributions that later require emergency capital injections or expensive short‑term borrowing (costing, for example, 6–10% per annum on hundreds of thousands of dollars), and (ii) under‑distributions, where surplus cash remains trapped in subsidiaries or intermediate holding companies, reducing group‑wide returns. For a mid‑sized holding group, mis‑sizing dividends by AUD 1 million and then borrowing at 7% for 6 months costs ≈AUD 35,000 in avoidable interest; repeated or larger miscalculations across entities can push this into the AUD 50,000–150,000 range annually. At the same time, failing to utilise franking capacity effectively can result in permanent value loss to shareholders, as franking credits may expire or be unusable once ownership or profitability profiles change.

Key Findings

Financial Impact: Quantified: A single over‑distribution of AUD 1,000,000 funded by 7% bank debt for 6 months costs ≈AUD 35,000 in extra interest; across several entities or repeated events, decision errors around dividend quantum and timing can cost AUD 50,000–150,000 per year in financing costs and lost franking value.
Frequency: Medium for private and family holding groups making annual or semi‑annual dividend decisions, especially where each legal entity’s solvency and profit position is not modelled centrally.
Root Cause: Entity‑level solvency and profit tests applied using incomplete data; lack of integrated view of profits, franking balances and cash across the group; ad‑hoc spreadsheets informing board decisions; weak scenario analysis of dividend options.

Why This Matters

The Pitch: Australian 🇦🇺 holding companies frequently mis‑size dividends by AUD 500,000–2,000,000 per year because directors lack timely visibility of profits, franking balances and cash flows. Automating dividend data consolidation and scenario modelling reduces these decision errors and preserves capital.