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  1. It isn’t only tax credits that investment bankers fail to take into account when putting such deals together. They also don’t consider the administrative consequences for shareholders. Look at the complexity in the multiple Westfield restructuring, or some of the Babcock & Brown entities a couple of years back. Shareholders, including SMSFs, might only have small holdings, but still have to work through the complexity to keep proper records for tax purposes – or pay someone else to do it.

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  2. Chris Jones

     /  July 6, 2014

    Is Royal Dutch Shell an Australian company? If not, how can it benefit from Australian franking credits?

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    • Hi Chris , I think the point was that listed companies and investment bankers seem to ignore the added value of franking credits to a core of their shareholder base and deliberately left them out of the arrangement for the buy back. It would not have cost them a huge sum extra to allow all shareholders the option to participate and would have built a great deal of goodwill.

      Companies rely on the loyalty of SMSF and Charitable investors to add stability of their share prices yet when they get an opportunity to reward that loyalty they miss the ball.

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