Who can participate in the plan?
All registered shareholders of Concentrated Leaders Fund Limited may participate in the Plan.
However, the Board may determine that a person who is not resident of Australia is not entitled to participate in the Plan if withholding tax has not been paid in accordance with the Tax Act, or if the shareholder’s participation in the Plan would contravene the laws of the jurisdiction in which that shareholder is resident.
Extent of participation
Participation in the Plan is entirely voluntary.
You may elect full participation, so that all dividends on all your shares will be subject to reinvestment.
Alternatively, you may elect partial participation, by nominating a particular number of your shares to which the Plan shall apply. You should note that where you have elected partial participation, the number of shares nominated shall be the minimum number of shares to which the Plan shall apply. Thereafter, the Plan shall also apply to all additional shares acquired either through the Plan or by any other means.
Reinvestment of dividends
The Plan has been structured to take account of the relationship between Concentrated Leaders Fund share price and its Net Tangible Asset value.
A. Where share price is less than NTA
If the prevailing share price is less than the Company’s Net Tangible Asset value, dividends on shares subject to the Plan will be used to acquire the Company’s shares on market.
We have ten trading days in which to do this on behalf of all shareholders participating in the Plan. The average share price, less brokerage and stamp duty, is then determined and the shares purchased under the Plan are allocated among the participating shareholders in accordance with their level of participation.
However, where we cannot buy enough shares on market within ten trading days to satisfy the full amount of dividends payable, the remainder of the dividend will be given to the shareholder in the form of shares issued under the Plan except that no discount shall apply to this issue of shares. (Refer below for issue price of shares.)
B. Where share price is greater than or equal to NTA
If the prevailing share price is higher than or equal to the Company’s Net Tangible Asset value, you will receive your dividends as newly issued shares in the Company. These shares shall be issued and allotted to your shareholder account.
In addition, the Company will promptly apply for quotation on the Australian Securities Exchange of new shares issued and allotted under the Plan.
What is the issue price of shares?
Shares issued and allotted under the Plan will be issued at the greater of:
• the NTA Price on the day immediately
prior to the Record Date; or
• 97.5% of the weighted average price of all shares traded on the ASX during the five trading days immediately prior to the Record Date.
Are there any costs of participation?
It costs nothing to join the Plan and there are no direct on-going costs of participating in the Plan.
Where shares are issued and allotted under the Plan, you will not be charged any brokerage, commission, stamp duty or other transaction costs.
Where shares are purchased on-market under the Plan, your shares shall be allocated to your shareholding account net of brokerage, commission, stamp duty or other transaction costs.
Can the plan be modified or terminated?
Concentrated Leaders Fund's Board of Directors may modify the rules of the Plan at any time or terminate it by giving one month’s notice to Plan participants.
How do I join the plan?
Simply complete the attached DRIP Form and either send, deliver or fax it to:
The Share Registrar Concentrated Leaders Fund Limited C/- Boardroom Pty Limited Level 12, 225 George St
Sydney NSW 2000
GPO Box 3993
Sydney NSW 2001
Facsimile: (02) 9279 0664
Your participation in the Plan will commence in respect of the first dividend payment after we receive your DRIP Form, provided it is received before 5.00 pm the business day after the Record Date in respect of that dividend.
How do I terminate or alter my participation in the plan?
Your participation in the Plan automatically terminates if you dispose of your entire shareholding in Concentrated Leaders Fund.
Otherwise, you may terminate or alter your level of participation in the Plan by completing a DRIP Form noting your termination or alteration.
Where you have elected partial participation of your shareholding under the Plan, and you dispose of a number of your shares such that the number of your remaining shares is less than the number of shares you previously nominated as applying to the Plan, your entire remaining shareholding will be subject to the Plan as if you had elected full participation.
You should note that if you are a Plan participant and you dispose of all your Concentrated Leaders Fund shares after the Record Date but before the payment of a dividend:
• if the Company is issuing and allotting shares under the Plan, you shall receive your dividends as shares;
• if the Company is acquiring shares on-market, you shall be allocated those shares which were acquired on your behalf under the Plan.
Are there any taxation consequences?
There may be tax implications for you in receiving additional shares under the Plan. You should discuss this with your financial or taxation adviser.
The Company takes no responsibility for the taxation liabilities of participants under the Plan.
If you have any questions about the operation of the Plan, your participation in the Plan or the payment of dividends under the Plan, please contact us on +61 2 9357 0788.