What is a Bonus Option Plan (BOP)?

[jurn]

Hello,

I just bought some ANZ shares, and I am filling out some shareholder forms.
I understand the DRP, but there's also a section for their Bonus Option Plan(BOP).
What is the BOP?
If I said I wanted ALL of my shares to participate in the DRP, can I also specify that all should participate in the BOP?

thanks,
Jurn

[bullmarket]

Hi and welcome jurn :)


Hello,

I just bought some ANZ shares, and I am filling out some shareholder forms.
I understand the DRP, but there's also a section for their Bonus Option Plan(BOP).
What is the BOP?
If I said I wanted ALL of my shares to participate in the DRP, can I also specify that all should participate in the BOP?

thanks,
Jurn

I've never participated in a BOP but my understanding is that they are another option for the way you choose to receive your dividends...ie...cash, DRP, BOP

I did a quick google and came up with this web page which lists ANZ's BOP Description and Terms and Conditions (http://www.anz.com/australia/aboutanz/GroupInformation/BOPTerms.asp) Basically, in a BOP you receive shares instead of cash just like for a DRP but I'm not sure exactly how the number of shares you receive is calculated or what the tax implications are.

Hopefully it will help clear things up and I would have thought that ANZ would send you some info on your various dividend options.

Also, I'm pretty sure the tax payable on the various dividend options will be different, so it might be a good idea to get some advice on your tax implications with regard to participating in the DRP and/or the BOP.

I doubt very much you will be able to nominate any portion of your holding to participate in both the DRP and BOP. I would expect a single share can receive its dividend in one form only.

Anyway, hope this helps and good luck. Maybe talk to or send an email to ANZ's "investor relations" (contact info should be on the ANZ website)

cheers :)

bullmarket

[jurn]

Thanks bullmarket,

Their website actually has info on it :) there's a nice PDF called Shareholder Alternatives that explains it.
You are right that it is another way to receive the dividend.
It looks like the taxable dividend for this year will turn into a postponed capital gain instead.
but, I could be just misreading things :sly:

Jurn