FAQs AMCIL

• What is the Tax Position when investing in AMCIL?
• What is the role of the Board?
• What is the role of the Investment Committee?
• What is the Company's dividend policy?
• How does AMCIL make its investment decisions?


What is the Tax Position when investing in AMCIL?

All of AMCIL's dividends to date have been fully franked, potentially enabling shareholders to offset the franking credits received against their own income. Recent changes to the imputation system also allow refund of franking credits to shareholders whose marginal tax rate is less than the Company tax rate.


What is the role of the Board?

The role of the Board of Directors is to set goals and policies for the operation of the Company, to oversee the Company's management, to regularly review performance and to generally monitor the Company's affairs in the best interests of shareholders. For these responsibilities, the Board is accountable to its shareholders.

The Company's primary investment aim is:

• • to deliver strong capital growth in the portfolio over the medium to long
     term with the generation of dividend income as a subordinate, but
     nevertheless important, objective.

The Board comprises a Chairman, Managing Director and five non-executive directors, all of whom have a personal financial interest in the Company.

Four of the five Non-Executive Directors are regarded as independent, that is, PC Barnett, RH Myer, RB Santamaria, and SDM Wallis. TA Campbell is considered a non-independent director because of the significance of the relationship with Goldman Sachs JBWere of which he is Senior Chairman, former Chief Executive and shareholder.

The directors meet formally as a Board at least 11 times per year. Additional commitment of time is also required for the various Committee activities.

What is the role of the Investment Committee?

The Board Investment Committee comprises all directors. The Investment Committee reviews all investment orders and transactions, trading portfolio share and option transactions, the performance of investments, sets investment policies, reviews sub-underwriting offers and deals with other portfolio related activities such as voting instructions and lodgement of proxies. The Committee meets regularly (normally fortnightly).

What is the Company's dividend policy?

The Company's primary investment aim is to deliver strong capital growth in the portfolio over the medium to long term with the generation of dividend income as a subordinate, but nevertheless an important objective.

Depending on the profit from year to year the dividends paid by the Company will maximise the distribution of franking credits. It would not be our normal practice to distribute realised capital gains unless franking credits have been generated. As a result, AMCIL's dividends may vary from time to time.

How does AMCIL make its investment decisions?

The Company's investment decisions are made by the Investment Team which includes the Managing Director and are reviewed by the Investment Committee, which usually meets fortnightly.

In relation to research functions and day-to-day dealing responsibilities relating to the portfolio, the Investment Committee is supported by an in house investment and dealing team. All transactions are subject to review and oversight by the Investment Committee.

In addition, because of the breadth and diversity of this area of the market, a large number of stockbrokers cover specific companies or sectors. This means AMCIL also deals with many brokers not just Goldman Sachs JB Were.