john anderson, chairman interview, page-57

Hi Alley,

Cheers mate. I always enjoy a very good and clean debate. And this one was an exemplary one. THANKS.

As for the Law Council of Australia and it's proposed amendments, all I can see/gather. is that the reasoning behind it all, is to try and protect the Directors and make their lives a little easier because, if they don't apply proper and due care in their decisions, it could come back and bite them in the backside.
To me, I would say too bad for them, for, it would make sure that they do the right thing for their shareholders and not just collecting money while sitting in the Board Room and drinking coffee (it that is all they drink anyway).
IMHO, they are paid huge emoluments, and they should fulfil their part of the job/bargain, by making sure that we poor retail investors will not get fleeced along the way. They are paid to do a job and they should do it without seeking protection if they are to be making wrong decisions. After all if I make one with a Customer of mine, I can be sued for damages. So why can't they..

Cheers,


Jake,

It is all so true mate. But we have to realize that we are living in this World with it's continuous changes.

As for you saying "it seems to me that we are mixing the term "special dividend" between how that process is treated for tax purposes, and how it is used in an legal/accounting sense/media sense", I like to point out that the changes were already being made in the Australian Companies Act of 2001.
IMHO, The only thing that the ATO has now been dragged in and put it's two bobs worth in the scenario, was to determine if they allow certain Special Dividends to be paid out of Capital Assets, simply because those dividends would be Tax Free in the hand of the Recipient/Investor. Hence why the ATO in most case has to release a ruling before those payments are allowed to be made.

In really can't see any problems and what the confusion/argument is all about though, because, I have been invested in APA for many years, and they always pay most of their dividends out of Capital and that part paid out of Capital Asset as a "Return of Capital", are always Tax free.

Regards to all.