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(02-09-2012, 03:47 AM)d.o.g. Wrote: I remember years ago when I was at the Zagro AGM and I raised the issue of Section 44 credits. Zagro had about $2m of these credits. Poh Beng Swee's reply was that it would cost the company money ($150k IIRC) to conduct a dividend-cum-rights issue, and since there was no benefit to the company there was no point.
From the company perspective, he was correct. But more importantly, given his large shareholding he wouldn't benefit from the Section 44 credits, as the dividends would put him in the top tax bracket. So perhaps in his view he would be spending money (much of it indirectly his) and getting nothing out of it. The fact that doing nothing would deprive small shareholders of their Section 44 credits did not seem to be important. The company did actually allow its Section 44 credits to expire worthless, thus destroying shareholder value.
I learned new stuff today, Section 44 credits.  It was out-dated with the one-tier tax scheme, but useful to understand history of company researched.
It is easier to understand older Singapore-resident companies like SPH and Singtel were paying out-sized dividend during 2002-2007 
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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02-09-2012, 12:29 PM
(This post was last modified: 02-09-2012, 12:30 PM by pianist.)
indeed i think we can look at this s44 credit tax issue betwwen 'owner occupied business and non-owner/family occupied business.'
for large corp like sph and singtel, i dun think there is a so-called controlling individual/family that would care about high tax bracket..
but it may be a different case for owner-occupied business.
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Wheelock and Isetan had the same issues. Retail investors threatened to sue them if the management didnt payout the s44 tax credits too!
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That is the value of paying fees and rewards to D.O.G. for his due diligence. Investing is serious work, if I get $1 return, sharing >20% is a not an issue. 
(02-09-2012, 03:47 AM)d.o.g. Wrote: pianist Wrote:is it true that for coprorate action in certain circumstances , it could be common that overseas shareholders could not able to participate? if the answer is yes, then it can be quite understandable.
Generally speaking, as long as you have a local mailing address it doesn't matter if you are an overseas shareholder. The main thing is that correspondence that requires action can be sent to you.
cif5000 Wrote:Don't you think human nature, such as greed and self interest, plays a huge role in this drama?
I remember years ago when I was at the Zagro AGM and I raised the issue of Section 44 credits. Zagro had about $2m of these credits. Poh Beng Swee's reply was that it would cost the company money ($150k IIRC) to conduct a dividend-cum-rights issue, and since there was no benefit to the company there was no point.
From the company perspective, he was correct. But more importantly, given his large shareholding he wouldn't benefit from the Section 44 credits, as the dividends would put him in the top tax bracket. So perhaps in his view he would be spending money (much of it indirectly his) and getting nothing out of it. The fact that doing nothing would deprive small shareholders of their Section 44 credits did not seem to be important. The company did actually allow its Section 44 credits to expire worthless, thus destroying shareholder value.
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There're still shareholders willing to sell 97 lots of their share @ 15 cents!!
http://info.sgx.com/webcoranncatth.nsf/V...4003F30FA/$file/Level_of_Acceptances.pdf?openelement
"..on 24 September 2012, the Offeror has received, pursuant to the Offer, valid acceptances in respect of an aggregate of 97,640 Shares,representing approximately 0.04% of the total number of Shares in issue"
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Think anyhow reply on the orange form...
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Surprise, for the 1st time in its history as a listed company, Zagro Asia is paying out a $0.005/share Interim dividend for FY12 (ending 31Dec12)......
http://info.sgx.com/webcorannc.nsf/Annou...endocument
The dividend will be paid on 18Dec12 - just in time for some good Christmas shopping!
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Hi,
This should a one off payment, upon the company receiving 500k and the return of dividends by Skopini-Zuelligs, as part of the conditions of the recent offer.
Rgds
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Quietly, Zagro Asia's share price has been on a gradual uptrend since early Dec12, after the counter went 'XD' for the $0.005/share Interim dividend on 28Nov12.
The company will report its FY12 (ended 31Dec12) full-year results by end-Feb13, and I guess the usual $0.01/share Final dividend can also be anticipated. Perhaps it is the right time to take another good look at the 1H-FY12 results.....
http://info.sgx.com/webcoranncatth.nsf/V...A003C03CC/$file/Zagro_SGX_Annc.pdf?openelement
As an IP-rich business, there is little doubt in my mind that the fair intrinsic value of Zagro Asia's business and share should be worth quite a lot more than its latest reported (as at 30Jun12) NAV/share of $0.2852. What do fellow forumers think?
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