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WHO IS ELIGIBLE TO PARTICIPATE IN THE PLAN?
All holders of UOA fully paid ordinary shares residing in Australia are eligible to participate in the Plan. Shareholders with registered addresses in the United States of America are not at present eligible.
Other overseas shareholders may be eligible, subject to overseas government approvals being obtained, and provided any legal restraints applicable overseas do not make participation in the Plan impracticable or illegal.
HOW IS THE PRICE OF SHARES ISSUED UNDER THE PLAN DETERMINED?
Shares are issued under the Plan from the weighted average market price of all UOA Shares traded on the ASX during the period being the date of closing of the Share Register for the determination of entitlements to payment of the relevant dividend and the four (4) trading days immediately after that date.
The price calculated may however be adjusted in such a manner as the Directors deem appropriate to preserve equity between participants and non-participants in the Plan.
WHAT ARE THE COSTS TO ME IF I PARTICIPATE IN THE PLAN?
There is no brokerage or other transaction costs payable on the shares allocated under the Plan.
All administration costs are met by the company and under present law, no stamp duty or other duties are payable by the participants.
HOW CAN I KEEP A RECORD OF MY PARTICIPATION IN THE PLAN?
After each dividend, you will be sent a statement which will show among other things:
- The number of shares nominated which are participating in the Plan;
- The dividend paid on those shares, the extent to which the dividend is franked and unfranked, and the imputation tax credit;
- The net amount of dividend reinvested in new UOA shares after deduction of any withholding tax;
- The number of new UOA shares issued and the value at which each has been issued;
- Any cash balance carried forward; and
- The total of UOA shares held.
WHAT IS MY TAXATION POSITION?
UOA takes no responsibility for the liabilities of participants in the Plan and as individual circumstances and law vary considerably, specific taxation advice should be obtained by participants, if required. It may be relevant to point out, however that for participants in the Plan, two (2) transactions will occur concurrently at each dividend payment:
- Payment of dividend, and
- Investment of the dividend in the subscription for new shares in UOA.
WHAT IS MY TAXATION POSITION?
Under current law and practice:
- Shares received under the Plan are treated as dividends for the purposes of Australian income on the same basis as cash dividends.
- Shares received under the Plan will, in general, be subjected to Australian capital gains tax upon disposal regardless of whether the UOA shares in respect of which they are issued have been acquired by the shareholder before, on or after 20 September 1985. The cost base of the shares received under the Plan will be calculated for capital gains tax purpose on the basis that they have been acquired at a cost equal to the cash value of the dividend which is applied to pay for the shares.
DO I GET A CERTIFICATE FOR SHARES ISSUED UNDER THE PLAN?
A Share Certificate will be issued for the total number of shares allocated under the Plan in respect of each dividend. Certificates will be forwarded to participants about the same time as dividend cheques. If you are a broker sponsored holder, a dividend reinvestment statement will be sent to you. A separate holding statement will be sent to you by the Australian Stock Exchange CHESS department at the end of the calendar month.
If you are participating in the Plan and a sale of some of your shares occurs so that at the date the Share Register is closed for determination of dividend entitlements and the number of shares held is less than the number nominated for participation in the Plan, then that lesser number will participate.
Should you sell shares which are participating in the Plan shortly before the Share Register closing date for determination of entitlement to a dividend, you should inform your broker that the shares are participating in the Plan. You should also immediately send a Variation Notice, withdrawing the Shares from the Plan. If you fail to do this, dividends on shares which you nominate to participate in the Plan and which you are still in your name as at the Share Register closing date for determination of dividend entitlements will automatically be reinvested in additional shares.
IS THERE ANY DIFFERENCE BETWEEN SHARES ISSUED UNDER THE PLAN AND EXISTING SHARES?
Shares issued under the Plan rank equally in all respects with the existing fully paid ordinary shares from the date of allotment and thus carry the same voting rights and entitlements to dividends, bonus and rights issue.
If you have elected full participation in the Plan, shares allotted under the Plan will also carry an immediate entitlement to further new share issues under the Plan in respect of future dividends. However, if you have elected partial participation then the new shares will also carry the entitlement to further new shares issues in respect of dividends which would be otherwise payable in cash unless you so elect by a valid Variation Notice which include the new shares (or part thereof) for participation in the Plan.
STOCK EXCHANGE LISTING
Application will be made for official quotation of the Shares issued under the Plan by ASX Ltd and its subsidiaries and such other official exchange or exchanges as may from time to time have accepted Shares for listing.
CAN THE TERMS AND CONDITIONS OF THE PLAN BE CHANGED?
The Directors of UOA may modify or suspend the Terms and Conditions of the Plan at any time upon giving notice to shareholders participating in the Plan, as provided in the Terms and Conditions.
The Directors may also terminate the Plan upon giving notice to participants.
The full Terms and Conditions which govern the operation of the Plan can be obtained from the Secretary, United Overseas Australia Limited, Suite 1, 467 Scarborough Beach Road, Osborne Park, Perth, Western Australia 6017 .