Merger: Yes or No, page-472

Scheme Booklet page 19:

"AlthoughNewCo CDI holders receive all of the economicbenefits of actual ownership of the underlying shares,there are a number of differences between holding aCDI and holding the underlying share, some of whichcould be viewed as disadvantageous. For example,holders of NewCo CDIs will need to act throughCHESS Depositary Nominees Pty Limited (CDN)for the purposes of voting the underlying sharesand exercising shareholder rights attaching to theunderlying shares (although CDN is required to complywith the instructions of the NewCo CDI holder inexercising shareholder rights available to CDN as theholder of NewCo Shares over which CDIs are issued)." (my emphasis)

Why is it neceessary to add the qualification: "(although CDN is required to comply with the instructions of the NewCo CDI holder in exercising shareholder rights available to CDN as the holder of NewCo Shares over which CDIs are issued)"?

To me, the fact that it is neccessary to add this "although" qualification, that indicates that the CHESS Depositary Nominees Pty Limited (CDN) doesn't always comply with the instructions of the NewCo CDI holder in exercising shareholder rights available to CDN as the holder of NewCo Shares over which CDIs are issued. Correct me if I am wrong.

No wonder it says that holding CDIs "could be viewed as disadvantageous".

I am AGAINST to that!