Trading Shares on the NZAX

LIC's lead broker is Craigs Investment Partners Limited (formerly ABN Amro Craigs. All Brokers charge a brokerage fee on the sale/purchase of shares with a minimum charge on small $ transactions. These rates vary between 0.5% and 2.5% depending on the amount of business a person does with the broker. LIC has negotiated a deal for all its shareholders of a brokerage of 1% with a minimum charge – please enquire with Craigs Investment Partners at the time of your transaction. Craigs Investment Partners who have a more favourable existing arrangement will retain that rate. For contact details of an Craigs Investment Partners advisor in your area visit: www.craigsip.com

What are my Co-operative Shares worth?
Co-operative Shares are worth $1.00 and are purchased from and surrendered to the Co-operative. In special circumstances these shares can be transferred between parties with the prior written approval of the Board of Directors. If this is a requirement please contact the Share Registrar at Livestock Improvement email phodges@lic.co.nz or phone 0800 542 742  

What are my Investment Shares worth?
The price will be determined by trading on the NZAX. Information is updated on the NZX website www.nzx.com on a 20 minute delayed basis. You can enter on "LIC" under the search ticker.

Do I need to buy & sell my investment shares on the NZAX?
No you can trade your shares privately but the same rules apply to trading on the NZAX as follows;

1) The Vendor must own the Investment shares and must retain a minimum of 2 Investment Shares for every Control Share held. If the Vendor has ceased using LIC services ( eg ceased farming) and has surrendered all his/her Co-operative Control Shares then he/she can sell all their Investment shares.

a)	To surrender Co-operative Control Shares please contact the Share Registrar (Pauline Hodges phodges@lic.co.nz or phone 0800 542 742)
b)	To privately buy/sell Investment shares both parties must fully complete the Investment Share Transfer form. Download and print the Investment Share Transfer form

If I buy another farmer's herd can I buy all their LIC Shares?
Yes - Subject to the Board of Directors prior approval. When a Dairy Farmer or Sharemilker purchases 100% of another Dairy Farmer's herd, the Board may accept the transfer of 100% of the Co-operative Control Shares held and / or the Investment Shares providing the total Investment Share holding does not exceed 5% of the shares on offer (1,476,430) To obtain the necessary forms and details on the Board's policy please contact the Share Registrar, Pauline Hodges phodges@lic.co.nz or phone 0800 542 742

I'm changing my farming entity - do I need to transfer my shares?
Annually many dairy farmers change the form of their legal farming entity by establishing or dissolving partnerships, companies or Trusts. This is often recorded in LIC's systems when the Sales Representative visits.

If you are changing your farming entity and wish to retain your existing participant code, you need to complete the attached Related Parties Transfer Form and have both the existing and new party execute and send the form to the address shown on the form.

Download and print the Related Parties Transfer Form

Shareholding Requirements After 1 July 2008

As from 1 July 2008 the compulsion to hold Investment Shares is removed. Only Co-operative Control Shareholders can own Investment Shares. They can hold either none or up to 5% ( currently 1,476,430) of the total on issue. The 5% restriction applies across multiple or associated holdings. Please refer to the Share Registrar, Pauline Hodges phodges@lic.co.nz or phone 0800 542 742 for further details.

Voluntary Investment Scheme (VIS)

All Co-operative Control Shareholders are eligible to participate in the VIS. Participation in this scheme provides authorisation for LIC to debit the Shareholders account annually with 4% of their spend on qualifying products and services, or deemed purchases, in the previous season. These funds are then sent to an approved holding entity (AHE) and used to purchase Investment Shares on the NZ Alternative Stock Exchange (NZAX).

Once the AHE has spent all the VIS funds, or prior to 31 May each year, if any funds are unspent, the shares purchased and/or the unspent funds, are allocated to the Shareholder. If the amount of the unspent funds is less than $2 that amount is forfeited to LIC as an uneconomical balance 

Each year the LIC Board considers whether or not it is beneficial for the company to provide financial assistance for the VIS by way of paying the administration and brokerage fees. To date the company has provided financial assistance. 

The VIS is a cost effective and convenient way for Shareholders to annually accumulate Investment Shares. The VIS Debit Authority / Application form can be obtained by contacting the Share Registrar, Pauline Hodges, phodges@lic.co.nz or phone  0800 542 742 or by contacting Link Market Services: Tammy.Fowler@linkmarketservices.com phone 09 375 5980.

Dividend Reinvestment Plan (DRP)
All Co-operative Control Shareholders are eligible to participate in the DRP. Participation in this plan provides authorisation for the Shareholders annual dividend, net of tax, received on both Co-operative Control and Investment Shares, to be used to purchase additional Investment Shares via the Approved Holding Entity (AHE).

Once the AHE has spent all the DRP funds, or prior to 31 May each year, if any of the funds are unspent, the share purchase and / or the unspent funds are allocated to the Shareholder. If the amount of unspent funds is less than $2, that amount is forfeited to LIC as an uneconomical balance. 

Each year the LIC Board considers whether it is beneficial for the company to provide financial assistance for the DRP by way of paying the administration and brokerage fees. To date the company has provided financial assistance.

The DRPis a cost effective and convenient way for Shareholders to annually accumulate Investment Shares. The DRP Application form can be either downloaded or obtained by contacting the Share Registrar Pauline Hodges: email phodges@lic.co.nz or phone 0800 542 742 or by contacting Link Market services: email Tammy.Fowler@linkmarketservices.com or phone 09 375 5980.