Fleetwood Corporation has adopted a new constitution that will make it easier for it to pay dividends, after pressure was applied by an activist shareholder group earlier this year.

The new constitution will allow the caravan and donga manufacturer to pay dividends to shareholders in the absence of retained earnings, with managing director Brad Denison stating in the company’s recent half-year report that the directors plan to resume dividend payments as "soon as practical".

The change followed calls in May by an activist shareholder group comprising Sandon Capital and Mercantile Investment Company, which together hold a 6.4 per cent stake in Fleetwood, to make amendments to the constitution that they argued was outdated.

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