Limit Buyback amount

https://www.theaustralian.com.au › business › dataroom › bendigo-and-adelaide-banks-homesafe-exit-poses-a-capital-return-conundrum › news-story › c8ee75feb81453a9ee0fa5cfe5733eea

Bendigo's Homesafe exit could be a special dividend bonanza

1 day agoBendigo and Adelaide Bank's Homesafe exit poses a capital return conundrum ... "Bendigo's capital position is currently comfortable, running a CET1 of 11.2 per cent against the board's

Retail shareholders need to send a message to the board to reverse the ASX trend of feeding excess funds into buybacks.

Past practices of ASX companies, besides paying out dividends, shareholders also used to receive a capital return distribution .
For the capital return the majority of retail shareholders only needed to adjust their cost base.

The majority of retail shareholders are missing out out due to many company’s corralling excess monies for buybacks that benefit
mainly the T20.

It’s the board duty to maximise the benefit for the majority of shareholders not cater for holders with large shareholding
trying to minimise paying more tax.

A capital return distribution would cause the T20 to pay more tax while the buyback allows them to decide when to dispose
off their shares. Thus paying the reduce tax of capital gains.

It amounts to the board taking a gamble on entitlement for long term retail shareholders just to satisfy the whims of the T20.