If Holdco reduces its dividend to the Invercargill City Council by up to $2 million there will be ramifications for the ratepayers, a councillor says. Holdco has already paid the council an interim dividend of $3.8m but is undecided on whether to pay the remaining $2m dividend given it faced a short to medium term cashflow crunch. He stressed that the Holdco dividend was for the council to subsidise rates, and the impact of a reduction would be serious. "How can a Holdco director be in charge of a report that is to do with Holdco giving a dividend? The councillors decided the full council should receive the report after the final Holdco dividend had been determined.

Source: Stuff April 16, 2019 07:41 UTC