FREQUENTLY ASKED QUESTIONS

How can I become a shareholder?

To invest in Florin Mining Investment Company Limited (NSX Code: FMI) you will need to have or open up a brokerage account in order to purchase shares in this company.  Your stockbroker or financial adviser will be able to assist you with what you need.

The National Stock Exchange of Australia has a list of stockbrokers that will be able to assist you in becoming a shareholder of Florin.  The list is available from the NSX website at: NSX Broker List.

 

My address has changed, who do I notify?
If you are CHESS Sponsored (Holder Identification Number (HIN) starting with 'X') you will need to advise your stockbroker who will arrange for the change to be noted in the company's share register.

If you are Issuer Sponsored (Shareholder Reference Number (SRN) starting with 'I') you should write or fax directly to the Florin share registry with details of the change and which of your accounts it affects.  Please include the signature of all holders/directors/trustees, as applicable.

Postal Address Newcastle Capital Markets Registries Pty Limited
10 Murray Street
HAMILTON NSW 2303
Facsimile (02) 4920 2878

 

Are there any taxation advantages?
Listed Investment Companies can provide taxation advantages to individual investors. The net income of the LIC is taxed at the 30% taxation rate and the net income plus franking credit is passed on to investors. With some LICs capital gains may be returned gross to shareholders, who are liable for capital gains tax. Many LICs used ‘buy and hold’ investment strategies which reduce realized capital gains, and those capital gains are typically eligible for the 50% capital gains tax concession.

An example of this is where a LIC sells some shares that it has held for more than 12 months, producing an eligible capital gain of $100. The LIC pays tax on that gain at the corporate taxation rate of 30%, leaving $70 to distribute to shareholders. The shareholders add the net dividend of $70 to the imputation credit of $30 (for the tax already paid). Therefore, the grossed-up gain is $100. However, due to the CGT concession, shareholders calculate tax on only $50 (half the gain) at their marginal rate of tax. If a shareholder is at the top marginal taxation rate (48.5% including the Medicare levy), then the tax payable comes to $24.25. This figure is then subtracted from the imputation credit ($30), to arrive at a total tax credit of $5.75. You should consult a qualified advisor to assess how these tax treatments affect your situation.
 

What is the difference between the trading account and the investment account?
Generally speaking the trading account will be used for transactions in which the anticipated period of time held will be of a shorter term than the investment account which will be used to hold assets for the medium term to long term.

 

 

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