Delays prevent issue for WAMMCO shares

31 Oct, 2001 10:00 PM
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DELAYS through the state parliament system have continued to prevent WAMMCO issuing shares to its co-op members.

Despite moves more than 18 months ago to amend current legislation, which would have tax implications for shareholders if they received their entitlements, the issue has remained unresolved.

WAMMCO general manager Des Griffiths said the problem, which related to capital gains tax laws, was "purely a technical hitch".

However, he said the physical issuing of shares could not go ahead until the government made some minor changes to legislation.

"The shares are sitting in a trust waiting for the legislation to go through," he said.

Mr Griffiths said the process had been slowed by the changeover of government at the last state election.

He said the previous government refused to move on it, but now it was just a matter of time before the changes were passed.

"The new government have made moves, but changing legislation takes time," he said.

"Cabinet have passed it to those who draft legislation, then it has to be listed to go through parliament."

Anticipating the issue was not at the "top of the priority list", Mr Griffiths said he did not expect the matter to be finalised before next year.

Meanwhile, shareholders did not stand to lose out because since the restructuring of WAMMCO there had been no profits generated, according to Mr Griffiths.

He said co-ops generally ran at a minimum profit, and worked somewhat differently to public companies who paid dividends, but nevertheless client entitlements were secure.

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