Last checked at 
1 Jul 2008 16:12
For immediate release 1 July 2008
SPARK VCT plc (formerly Quester VCT plc) (the "Company")
Statement by the Board concerning dividend policy and result of EGM
At the Extraordinary General Meeting of the Company held today in connection with shareholders' approval of the new management performance incentive arrangements (the "EGM"), the Board made the following statement concerning the dividend policy of the Company.
Under the new management performance incentive arrangements, rewards under the performance incentive scheme will be paid each year, based on year-on-year total returns (net asset values plus cumulative dividends paid) achieved in excess of a hurdle return of 5 per cent. of the opening net asset value each year, starting from the net asset value at 31 December 2007, and will be calculated as 20 per cent. of that excess. Full details are set out in the circular to shareholders dated 12 June 2008 (the "Circular").
A number of shareholders have asked whether dividends would be paid at the same time as payments under the scheme.
The Board considers that, in a portfolio composed largely of early stage venture capital investments, a substantial upward revaluation of investments (and therefore a substantial growth in year-on-year total return) should normally be accompanied by a trade sale or IPO of one or more portfolio companies, which could involve a cash realisation of the Company's investment and enable a dividend to be paid out of the gain arising.
The Board wishes to announce that, in circumstances in which growth in the year-on-year total return results in an entitlement arising under the management performance incentive arrangements, the Board would also expect to pay a dividend.
The resolution for the approval of the entry by the Company into the loan note instrument and the issue of loan notes thereunder in the manner described in the Circular (being the mechanism for implementation of the new management performance incentive scheme) was duly passed as an ordinary resolution on a show of hands at the EGM.
Enquiries:SPARK VCT plcSecretaryNghi Tran 020 7851 7777
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