Telstra 2009 Annual Report Download - page 239

Telstra Corporation Limited and controlled entities
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Notes to the Financial Statements (continued)
We are not aware of any matter or circumstance that has occurred
since 30 June 2009 that, in our opinion, has significantly affected or
may significantly affect in future years:
• our operations;
• the results of those operations; or
• the state of our affairs;
other than:
Final Dividend
On 13 August 2009, the directors of Telstra Corporation Limited
resolved to pay a fully franked final dividend of 14 cents per ordinary
share. The record date for the final dividend will be 28 August 2009
with payment being made on 25 September 2009. Shares will trade
excluding the entitlement to the dividend on 24 August 2009.
A provision for dividend payable has been raised as at the date of
resolution, amounting to $1,737 million. The final dividend will be
fully franked at a tax rate of 30%. The financial effect of the dividend
resolution was not brought to account as at 30 June 2009.
There are no income tax consequences for the Telstra Group and
Telstra Entity resulting from the resolution and payment of the final
ordinary dividend, except for $745 million franking debits arising from
the payment of this dividend that will be adjusted in our franking
account balance.
Dividend Reinvestment Plan
The Future Fund has declined to participate in the dividend
reinvestment plan (DRP) for the 2009 final dividend and accordingly
the directors of Telstra Corporation Limited have determined the DRP
continues to be suspended.
Change in Directshare terms
As a result of the changes to tax laws governing employee share
schemes, creating uncertainty in relation to the future tax treatment
of shares acquired under employee share schemes, the Board has
determined that non-executive directors will not be required to
receive a minimum of 20% of their total remuneration as Directshares
from 1 July 2009. Instead, the Board has decided to implement a
policy to encourage non-executive directors to hold a total value
equivalent to at least 50% of their total remuneration as Telstra
shares. Such shares are to be acquired over a five year period from 1
July 2009 to further align the remuneration structure with the
interests of shareholders.
30. Events after balance date