Subsidiary Distributing extra cash/dividend to parent company/shareholders

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Should a subsidiary be able to distribute extraordinary dividends?

Yes
40
93%
No
3
7%
 
Total votes: 43

Njeroe
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Subsidiary Distributing extra cash/dividend to parent company/shareholders

Post by Njeroe »

As suggested here:
viewtopic.php?f=37&t=4516

I created this poll to gage the interest. It would become possible to distribute extra dividends under financial actions. If you own 100% as the parent company it would be a reverse capital injection.
beamthegreat
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Re: Subsidiary Distributing extra cash/dividend to parent company/shareholders

Post by beamthegreat »

I already posted this in another thread, but theres a temporary workaround, in case anyone has this problem.

Use your subsidiary to create a new subsidiary, inject all the cash you want to transfer back into that firm, then merge with it. This only works if you control 75% or more of the shares.
Maverick
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Re: Subsidiary Distributing extra cash/dividend to parent company/shareholders

Post by Maverick »

Very good idea request and also work around. I wish i thought of it sooner.
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cantdownloadit
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Re: Subsidiary Distributing extra cash/dividend to parent company/shareholders

Post by cantdownloadit »

and between controlled subsidiaries, as inter company loans are a common thing
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David
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Re: Subsidiary Distributing extra cash/dividend to parent company/shareholders

Post by David »

This new feature will potentially affect the gameplay balance, as the player can easily create a new subsidiary and transfer money from the subsidiary to the parent company. Because of this, it is unlikely to get implemented unless we find a way to eliminate the loophole. If you have any good ideas on this, please let us know.
LT3001
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Re: Subsidiary Distributing extra cash/dividend to parent company/shareholders

Post by LT3001 »

On the loophole point on setting up a subsidiary, borrowing and then paying a special dividend, you could close this by disallowing special dividends that would leave the company in a net debt position.

So if cash is $50m and debt is $30m, the maximum you can special dividend out is $20m.

You could also require subsidiaries hold a minimum amount of cash or net assets. Currently you need at least $20m to start a subsidiary. You could have a policy that disallows special dividends from subsidiary if it would reduce net assets below $20m as well.

Pretty easy fix, and a special dividend feature really is badly needed in the game.
standardplayer
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Re: Subsidiary Distributing extra cash/dividend to parent company/shareholders

Post by standardplayer »

Check this out i think this might solve the special dividend problem.

Special Dividends:
http://www.enlight.com/forum/viewtopic.php?f=37&t=5760
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