Microsoft investors OK record divi

MICROSOFT shareholders have approved the biggest one-time dividend in history, authorising the software giant to hand out $32bn (£17.25bn) from its bulging cash hoard.

The unprecedented distribution - which will amount to $3 a share - will make Microsoft chairman Bill Gates $3bn better off when it is paid out next month.

But the world's richest man will hand the windfall to his charitable foundation, which funds a slew of health and education programmes around the world. Even after the special-dividend Microsoft will be still be cashrich-Its reserves topped $60bn at the end of September, and they are still growing at about $1bn a month.

The approval of the payout at the company's annual general meeting came as the software company also made history yesterday with the US launch of its video game Halo 2, a sequel to the cult game's first edition. Microsoft estimated that it had sold $100m worth of the game, a record for first-day receipts for both games and movies.

'In the first 24 hours we'll have an opening that's more popular than any motion picture in history,' Gates said at the meeting. Halo 2 goes on sale in Britain today.

Despite the record dividend - and an increase in the regular dividend - some shareholders criticised executives because the company's share price had hardly moved for three years.