Shaw 2013 Annual Report Download - page 42

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S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
,
x
)C
ontrol o
f
the
C
om
p
an
y
b
y
the
S
haw
f
am
i
l
y
As at October 31, 2013, JR Shaw and members of his family and the corporations owned and
/
o
r controlled by JR Shaw and members of his family (the “Shaw Family Group”) own
a
pp
rox
i
matel
y
7
9%
o
f
the outstand
i
n
gC
lass A
S
hares o
f
the
C
om
p
an
y
. The
C
lass A
S
hares ar
e
t
he only shares entitled to vote in all shareholder matters. All of the Class A Shares held by th
e
Shaw Famil
y
Grou
p
are sub
j
ect to a votin
g
trust a
g
reement entered into b
y
such
p
ersons. The
vot
i
n
g
r
ig
hts w
i
th res
p
ect to such
C
lass A
S
hares are exerc
i
sed b
y
the re
p
resentat
i
ve o
fa
committee of five trustees. Accordingly, the Shaw Family Group is, and as long as it owns
a
m
ajority of the Class A Shares will continue to be, able to elect a majority of the Board of
Di
rectors o
f
the
C
om
p
an
y
and to control the vote on matters subm
i
tted to a vote o
f
the
Company’s Class A shareholders.
x
i)
In
f
ormat
i
on s
y
stems and
i
nternal bus
i
ness
p
rocesse
s
M
any aspects o
f
the
C
ompany’s bus
i
ness depend to a large extent on var
i
ous IT systems an
d
software and internal business processes. Shaw also undertakes ongoing initiatives to updat
e
and
i
m
p
rove these s
y
stems and
p
rocesses. Althou
g
h the
C
om
p
an
y
has taken ste
p
s to reduce
t
hese r
i
sks, there can be no assurance that potent
i
al
f
a
i
lures o
f
,orde
fi
c
i
enc
i
es
i
n, these
systems, processes or change initiatives will not have an adverse effect on the Corporation’
s
bus
i
ness and o
p
erat
i
n
g
results.
xii) Dividend payment
s
The
C
om
p
an
y
currentl
yp
a
y
s monthl
y
common share d
i
v
i
dends
i
n amounts a
pp
roved on a
q
uarterly bas
i
s by the Board o
f
D
i
rectors. At the current approved d
i
v
i
dend amount, the
Company would pay approximately
$
460 million in common share dividends during 2014
(
be
f
ore tak
i
n
gi
nto account the
C
om
p
an
y
’s d
i
v
i
dend re
i
nvestment
p
lan
(“
DRIP”
)
, see
f
urther
d
eta
i
ls on page 5
3)
.Wh
i
le the
C
ompany expects to generate su
ffi
c
i
ent
f
ree cash
f
low
i
n
2014
t
o fund these dividend payments, if actual results are different from expectations there can be
n
o assurance that the
C
om
p
an
y
w
i
ll cont
i
nue common share d
i
v
i
dend
p
a
y
ments at the curren
t
l
e
v
e
l
.
x
iii)
Ac
q
u
i
s
i
t
i
ons and other strate
gi
c transact
i
on
s
The
C
ompany may
f
rom t
i
me to t
i
me make acqu
i
s
i
t
i
ons and enter
i
nto other strateg
ic
t
ransactions. In connection with these acquisitions and strategic transactions, Shaw may fail t
o
real
i
ze the ant
i
c
ip
ated bene
fi
ts,
i
ncur unant
i
c
ip
ated ex
p
enses and
/
or have d
iffi
cult
y
incorporating or integrating the acquired business, the occurrence of which could have
a
m
aterial adverse effect on the Company
.
38