Southern Phone dividends now paid

The Upper Lachlan Shire Council is a shareholder in the Southern Phone, a local government-owned telecommunications provider.

It’s one of 35 councils that each hold two shares, purchased for $1 each.

Crookwell Senior Citizens gained funding from Southern Phone for their new veranda prior to the grant funding ending. Photo Bronwyn Haynes.

Crookwell Senior Citizens gained funding from Southern Phone for their new veranda prior to the grant funding ending. Photo Bronwyn Haynes.

Dividends are determined by the proportion of revenue generated from each council area.

Twenty per cent is split equally among all 35 shareholders and 80 per cent is paid according to the amount of business generated in the council area.

The dividend to be paid to Upper Lachlan Shire Council this year will be $23,659.

Southern Phone is an unlisted public company and is believed to be the most successful commercial enterprise yet developed by a group of councils in Australia.

Only councils can hold shares in the company, with the shareholding being a means of returning profits to the community.