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A Board Resolution Dividend Distribution is a crucial corporate governance document used when an Australian company's board of directors decides to distribute profits to shareholders. This document is required under the Corporations Act 2001 (Cth) to formally record the board's decision-making process and demonstrate compliance with legal requirements, particularly the solvency test under Section 254T. The resolution typically follows a board meeting where directors review the company's financial position, consider future business needs, and determine the appropriate dividend amount. It must include specific details about the dividend payment, including amount per share, record date, payment date, and any applicable franking credits. This document is particularly important for maintaining proper corporate records and protecting directors from potential liability by evidencing their due consideration of relevant factors in declaring the dividend.

1. Meeting Details: Information about the board meeting including date, time, location, directors present, and confirmation of quorum

2. Background: Context for the dividend consideration, including reference to relevant financial periods and company performance

3. Financial Position: Confirmation of the company's ability to pay dividends, including solvency statement and reference to financial tests under Section 254T of the Corporations Act

4. Directors' Consideration: Record of the matters considered by directors in reaching their decision, including financial statements and future business needs

5. Formal Resolution: The actual resolution declaring the dividend, including amount, payment date, and record date

6. Certification: Signature section for chair/company secretary to certify the resolution