Telus 2005 Annual Report Download - page 36

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35
Competition is also intense in other areas as TELUS continues its growth into emerging markets
such as Web hosting and application services and human resource (HR) process outsourcing.
DIVIDENDS DECLARED
The dividends per Common Share and Non-Voting Share declared with respect to each quarter
by TELUS, during the three-year period ended December 31, 2005, are shown below.
Quarter ended (1) 2005 2004 2003
March 31 $0.20 $0.15 $0.15
June 30 $0.20 $0.15 $0.15
September 30 $0.20 $0.15 $0.15
December 31 $0.275 $0.20 $0.15
(1) Paid on the first business day of the next month.
TELUS’ Board of Directors reviews its dividend rate quarterly. On November 10, 2005, TELUS
announced that it was increasing its dividend to $0.275 per share on the issued and outstanding
Common and Non-Voting Shares. This 37.5% increase was consistent with the Company’s
forward-looking dividend payout ratio guideline of 45 to 55% of sustainable net earnings first set
in October 2004. TELUS’ quarterly dividend rate will depend on an ongoing assessment of free
cash flow generation and financial indicators including leverage, dividend yield and payout ratio.
CAPITAL STRUCTURE OF TELUS
The authorized capital of TELUS consists of 4,000,000,000 shares, divided into: 1)
1,000,000,000 Common Shares without par value; 2) 1,000,000,000 Non-Voting Shares without
par value; 3) 1,000,000,000 First Preferred shares without par value and; 4) 1,000,000,000
Second Preferred shares without par value. The Common Shares and Non-Voting Shares are
listed for trading on the Toronto Stock Exchange and the Non-Voting Shares are listed for
trading on the New York Stock Exchange. See “Market for Securities”.
TELUS Common Shares and TELUS Non-Voting Shares
Subject to the prior rights of the holders of First Preferred shares and Second Preferred shares,
the Common Shares and the Non-Voting Shares are entitled to participate equally with each
other with respect to the payment of dividends and the distribution of assets of TELUS on the
liquidation, dissolution or winding up of TELUS.
Neither the Common Shares nor the Non-Voting Shares can be subdivided, consolidated,
reclassified or otherwise changed unless the other class is changed in the same manner.
The holders of the Common Shares are entitled to receive notice of, attend, be heard and vote at
any general meeting of the members of TELUS on the basis of one vote per Common Share held.
The holders of Non-Voting Shares are entitled to receive notice of, attend and be heard at all
general meetings of the members of TELUS and are entitled to receive all notices of meetings,
information circulars and other written information from TELUS that the holders of Common