* Quoting from "Bob Muirhead to Andrew Freeman on 12 Nov 94  19:18" *

 -=> Quoting Andrew Freeman to All <=-
 
 
 AF> I note that there is no material in the agenda for the 1994 AGM
 AF> about Boral's decision to suspend its Dividend Re-investment Plan
 AF> and Dividend Bonus Plan schemes. I disagree strongly with this
 AF> suspension decision. As Bruce Bond has pointed out in The Age,

 BM> Hi Andrew.  I am against DRPs and have written elsewhere on the
 BM> subject. Firstly, every shareholder has to participate, or suffer
 BM> dividend dilution, especially with the high takeup of some DRPs. 

 I support the idea of schemes not having a discount to market
 price.

 BM> Secondly, DRPs encourage automatic, mindless investing.  Every
 BM> investment, including dividend income, should be considered on its
 BM> merits.

 You can participate as and when you wish.

 Reinvesting in a particular company may not be the appropriate
 BM> choice at the time. Thirdly, DRPs create odd lots for small
 BM> shareholders which may have to be sold at a significant discount to the
 BM> market and offset the original discount.

 Can be problem if only participating short term. I encourage
 people to participate over long term. Can sell large parcels
 with odd lot element (e.g. 11001 Westpac shares) without needing
 to pay premium on odd lot element.

 Fourthly, some institutions
 BM> use the DRPs improperly to "strip" dividends and make
rapid short term
 BM> gains. 

No a problem if they are not issued at a discount to market.
...
Thank you for your response.

Andrew





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