Shareholder dividend statements and Māori authority distribution notices

Submission

(Chapman Tripp)

Companies must provide dividend statements to shareholders when they pay a dividend. The Electronic Transactions Act 2002 allows companies to meet this requirement by emailing statements to their shareholders. This should also be made explicit in the Tax Administration Act 1994.

Comment

Officials understand that the Electronic Transactions Act allows companies to meet the requirement to provide dividend statements to shareholders by making the statement available electronically to their shareholders (as long as the recipient consents to receiving the statement in that way).

Officials agree that this should be made explicit in the Tax Administration Act 1994 for legislative consistency and ease of use.

Officials note that the Electronic Transactions Act also permits Māori authorities to meet the requirement to provide Māori authority distribution notices by making the notice available electronically to the recipient, when the recipient consents to receiving the notice in that way. This should also be made explicit in the Tax Administration Act.

Recommendation

That the submission be accepted, and also extended to Māori authorities.