‘extraordinary dividend’, in relation to-

(a)     a preference share, means so much of the amount of any dividend received or accrued in respect of that share as exceeds the amount that would have accrued in respect of that share had it been determined with reference to the consideration for which that share was issued by applying an interest rate of 15 per cent per annum for the period in respect of which that dividend was received or accrued;

[Paragraph (a) substituted by section 80(1)(c) of Act 23 of 2018 and by section 62(1)(a) of Act 34 of 2019]

(b)     any other share, means so much of the amount of any dividend received or accrued-

(i)      within a period of 18 months prior to the disposal of that share; or

(ii)     in respect, by reason or in consequence of that disposal,

as exceeds 15 per cent of the higher of the market value of that share as at the beginning of the period of 18 months and as at the date of disposal of that share:

Provided that a dividend in specie that was distributed in terms of a deferral transaction must not be taken into account to the extent to which that distribution was made in terms of an unbundling transaction as defined in section 46(1)(a) or a liquidation distribution as defined in section 47(1)(a);

[Definition of “extraordinary dividend” amended by section 62(1)(b) of Act 34 of 2019 deemed effective on 30 October, 2019 and applicable in respect of dividends received or accrued on or after that date and by section 62(1)(c) of Act 34 of 2019]