Summary
This Form 8-K filing by ACE Limited (now Chubb Ltd) on December 17, 2009, details the official amendment to its Articles of Association to reflect a par value reduction dividend. This reduction, approved by shareholders earlier in the year, is being implemented in four quarterly installments, with the third installment fixed at CHF 0.32 per share based on the prevailing exchange rate. This adjustment effectively returns capital to shareholders and alters the company's share capital structure.
Key Highlights
- 1ACE Limited's shareholders approved a dividend in the form of a par value reduction payable in four quarterly installments.
- 2The annual par value reduction was initially set at CHF 1.36 per share, equating to US$0.31 per quarter.
- 3The third installment of the par value reduction was fixed at CHF 0.32, adjusted for the USD/CHF exchange rate as of December 14, 2009.
- 4The company amended its Articles of Association on December 16 and 17, 2009, to reflect this par value reduction and share adjustments.
- 5The amended and restated Articles of Association became effective upon filing with the commercial register on December 17, 2009.
- 6The company's par value per share was CHF 31.88 as of December 17, 2009.
- 7The dividend scheduled for January 11, 2010, will be paid to shareholders of record as of December 17, 2009.
Frequently Asked Questions
The primary purpose of this filing is to formally announce and document the amendment of ACE Limited's Articles of Association to implement the third quarterly installment of a par value reduction dividend, as previously approved by shareholders.
This par value reduction is a mechanism to return capital to shareholders. Each installment effectively reduces the nominal value of the shares outstanding, and the dividend payment represents a distribution of this reduced capital.
The filing indicates that the par value reduction amount for each installment is adjusted based on the USD/CHF exchange rate to ensure a target distribution of $0.31 per share per quarter. The CHF 0.32 for the third installment reflects the exchange rate on December 14, 2009.
The dividend scheduled for payment on January 11, 2010, will be distributed to shareholders who were on record as of the close of business on December 17, 2009.