Study my suggested example of Suncorp RoC with Consolidation,...

Study my suggested example of Suncorp RoC with Consolidation, which should sort out ur confusion.

Consolidation is also performed by the company and it also reduces the number of shares on issue.
The remaining shares that u hold are at future risk/reward like the shareholders who hadn’t participated in the on-market buyback.

Recall the Chairman used the wording along the line for the on-market buyback. ‘he believes it will benefit shareholders in the future.’
Those comments are also applicable if NHC opted for Consolidation or the on-market buyback for the remaining shares on issue.

If the pool of fund that has been set aside by company for the on-market buyback was instead allocated to be used for the return of capital with consolidation.
Besides receiving in this financial year, 2 lots of dividends u also get an extra payment that is normally called a return of capital distributions - 3 guaranteed payment once declared by the board.

For the majority of small shareholders the amount that u receive as a distribution reduces the cost base of ur shares.
Also for these smaller holder that distribution will probably be tax free but for traders like institutions; my understand it is considered as income and may increase their tax obligations to the ATO.

Which is a fairer way to disperse basically excess monies? Should the board have maximised the payments to all shareholders during cost of living stresses or cater for the T20 desire to reduce their tax obligations?

‘What is generally the mantra to promote the on-market buybacks, it is considered the most ‘tax efficient way” to return capital”