Shaw 2011 Annual Report Download - page 110

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Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2011, 2010 and 2009
[all amounts in thousands of Canadian dollars except share and per share amounts]
are paid on Class B Non-Voting Shares, holders are credited with RSUs equal to the dividend.
RSUs do not have voting rights as there are no shares underlying the plan.
During 2011, $454 was recorded as compensation expense. At August 31, 2011, 243,093
RSUs were outstanding and the total unrecognized compensation expense was $4,992 which is
expected to be recognized over 1.8 years.
Dividends
To the extent that dividends are declared at the election of the board of directors, the holders of
Class B Non-Voting Shares are entitled to receive during each dividend period, in priority to the
payment of dividends on the Class A Shares, an additional dividend at a rate of $0.0025 per
share per annum. This additional dividend is subject to proportionate adjustment in the event
of future consolidations or subdivisions of shares and in the event of any issue of shares by way
of stock dividend. After payment or setting aside for payment of the additional non-cumulative
dividends on the Class B Non-Voting Shares, holders of Class A Shares and Class B Non-Voting
Shares participate equally, share for share, as to all subsequent dividends declared.
Dividend reinvestment plan
The Company has a Dividend Reinvestment Plan (“DRIP”) that allows holders of Class A Shares
and Class B Non-Voting Shares who are residents of Canada to automatically reinvest monthly
cash dividends to acquire additional Class B Non-Voting Shares. During the current year, the
Company announced that the Class B Non-Voting Shares distributed under its DRIP would be
new shares issued from treasury at a 2% discount from the 5 day weighted average market
price immediately preceding the applicable dividend payment date. Previously, the Class B
Non-Voting Shares were acquired on the open market at prevailing market prices. The change
was effective for the May 30, 2011 dividend payment.
Share transfer restriction
The Articles of the Company empower the directors to refuse to issue or transfer any share of
the Company that would jeopardize or adversely affect the right of Shaw Communications Inc.
or any subsidiary to obtain, maintain, amend or renew a license to operate a broadcasting
undertaking pursuant to the Broadcasting Act (Canada).
106