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The Board of AST are not getting my shares to get hold of the cash as AMC shareholders want it!
AGE
indeed, it will be rejected!
there is a saying that “once bitten twice shy”
i was stitched up by the board or former board of ast with their bull**** about gas in slovenia and the share price has just gone down and down so they switched to cuba!
age
AST have had no reply from the Board of AMC which is to be expected as they do not even respond to AMC shareholders!
AGE
The Board of AST must be joking as AMC is worth a minimum of 2.15p!
So no share premium at all based upon estimated cash in AMC.
An opportunistic bid!
AGE
TrickyDicky2,
I agree that we are lucky to have received 35m USD as there was a possibility that the mine licence could have been confiscated and we would lost all our money.
I for one am not impressed with Robin Young and the rest of the Board and that is because of the lack of communication on their part.
For instance Adam Habib was not re-elected as a Director and an RNS was issued to say they are seeking advice from a firm who of BVI solicitors and they would issue a further RNS once they have heard from the solicitors and nothing was ever heard about this.
240 days or so ago they issued an RNS stating they are turning their full attention to the tax implications for shareholders and when the special dividend was issued there was no mention of it.
When assessing the performance of a Board one has to distinguish between things that are in the Boards control and things that are not.
Communication and carrying out proper diligence before announcing the payment of the special dividend are within the control of the Board.
Surely you would not announce the payment of a special dividend before first investigating if there are any adverse consequences for AMC shareholders.
When I used to work I would have an annual review and I would be assessed based upon the agreed targets that had been set during the previous years annual review.
Good job I do not have the job of carrying out the annual reviews for the AMC Board and assessing them on those things that are within their control because they would get an “F” for fail.
Try sending them a message via their internet messaging
system and see if you gets reply and I can tell you that you will not receive a reply.
There is no email address available for Robin Young so there is no way of contacting him!
Try ringing the AMC PR firm and you will find it goes through to answer phone system.
AGE
Gwm121 thanks for the offer of help but I have it all in hand!
We can rely on this chat board continuing!
AGE
Hi gwm121 yes I will keep you and others updated via this forum!
AGE
Gwm121,
It is me who has done most of the posts giving my opinion it is a return of capital.
One of my roles in the Company I used to work for was to look after Corporation Tax so I have a fair bit on knowledge about tax matters.
AGE
Gwm121 I am not going to include the special dividend in the foreign dividends section of my U.K. tax return but I am going to fill in the white box section of my tax return which is towards the end of the tax return and I will give details re the amount I have received.
I will also include many additional pages of typed narrative with copies of various tribunal cases including the John Buckingham V HMRC First Tier Tribunal case and other tax cases to support my opinion that it is a return of capital.
AGE
Hi Gwm121 I agree with your comments that AMC should state if it is a return of capital or not but seeing as 236 days have elapsed since they said they are turning their full attention to the tax treatment for shareholders I would suspect they are not going to issue a statement.
Logic tells you they have no intention of providing an answer because if they were going to do so then they would have included it in the dividend RNS.
They will just push it under the carpet so as to speak just as they did when Adam Habib was not re-elected as a Director around 2 years ago and the RNS stated they are seeking advice from BVI solicitors but we never heard about this matter again!
It is expensive to take the case to tribunal but as my dividend is so large I am going to attend the tribunal and represent all AMC shareholders.
AGE
We have a Board comprised of highly educated people with many years of mining experience on the Board and yet between them they do not have an ounce of common sense!
The correct procedure before announcing the payment of a special dividend is to carry out proper due diligence to find out what the tax implications are for AMC shareholders before making a decision to declare a special dividend.
As I posted yesterday the Board issued an RNS 235 days ago stating that they are going to turn their full attention to the tax implications of the payment of the special dividend.
The RNS issued yesterday provided the XD, record and payment dates but there was no information about the tax implications so shareholders are left in limbo so this is hardly what you call turning your full attention to the matter!
AGE
232 days ago they issued an RNS which included a paragraph in which they stated they are going to turn their full attention to the tax implications for shareholders and the RNS does not include anything about this very important issue!
AGE
I think people must have concerns as to whether the special dividend is going to be subject to U.K. dividends tax or not.
The Board stated the following on the 3 October 2022
“With the key approvals now in hand, we shall complete our assessment of the classification of the dividend regarding shareholder taxation”
It is now the 22 May 2023 so 232 days have passed since they stated they have turned their full attention to this matter!
This matter should have been considered before the Board stated they would pay a special dividend!
232 days is more than sufficient time!
AGE
AMC will have around 5m of cash after the payment of the 1.80 p special dividend!
AGE
Surprising there are not that many people interested in buying AMC shares at say 1.70p to then get a 1.80p special dividend by the 12 June 2023 and AMC stated that if they do not find an RTO they will pay a second special dividend!
The simple return is 5.88% and the annualised return is 107.35% being 365/20 x 5.88%
AMC will still have around 5m pounds of cash as free the payment of the 1.80p special dividend
AGE
If you have shares in a non ISA account then you would have to sell them and then buy back them via an ISA but the shortest settlement period is T plus 2.
The nearer we get to the payment of the special dividend the riskier it gets as an RNS could come out either this Wednesday the 24 May 2023 or Thursday 1 June 2023 and the ex div dates and record dates would be 1 June 2023 and 2 June 2023 for the announcement on the 24 May 2023 and 8 June 2023 and 9 June 2023 for an announcement on the 1 June 2023.
If the Board keep to their word and pay it within 90 days of receipt of the 35m USD then the last day to pay it is 12 June 2023 so with an XD date of 8 June 2023 and record date of
9 June 2023 it leaves very little time to identify the shareholders who are entitled to receive the special dividend and then arrange payment!
AGE
I am keen to hear what advice the Board have received from a tax Barrister as to whether the special dividend is income in the hands of shareholders or whether it is a return of capital.
In the Buckingham v HMRC First Tier Tribunal tax case the judges found that the majority special dividend was a return of capital and a minor part was income on the hands of Mr Buckingham.
The distinguishing features of the Buckingham case was that the Company that paid the special dividend had sufficient distributable reserves to be able to the minor part of the dividend but not all if it.
In AMC’s case it does not have any distributable reserves to pay the dividend out of.
It is important that should AMC shareholders decide the special dividend is a return of capital that they include this information in the white box of their tax return for 2023/2024.
By doing this you have brought it to HMRC’s attention and so they will then open an enquiry into your tax return.
You can see in the Buckingham tax case that one tax specialist was of the opinion that the majority of the dividend was a return of capital and the minor part was income in the hands of shareholders but this was reviewed by another tax specialist that all of the dividend was income n the hands of shareholders
The judges found in favour of the tax payer as the majority was a return of capital and a minor part was income in the hands of shareholders.
AGE
Gwm121 and Geng are both incorrect for stating that the special dividend is a return of capital because AMC have sold an asset and are returning part of the proceeds to shareholders via a special dividend.
If you look at page 12 & 13 of a document called the Law Committee consultation paper : Capital and Income in trusts you will see a tax case called Hill v Permanent Trustee Company of New South Wales.
In the Hill case a corporate trustee held shares in a pastoral company. The pastoral company sold almost all of its land, livestock and other assets.
The Supreme Court held that the dividend should be treated as capital capital of the trust.
On appeal the Privy Council reversed the decision and held that the dividend should be treated as income of the trust estate.
Whether a Company makes a trading profit or a capital gain from the disposal of an asset then when it distributes the profit or capital gain via a dividend or special dividend then it is to be treated as income in the hands of shareholders if it has sufficient distributable reserves to pay the dividend out of.
However, a U.K. Company is only allowed to pay a dividend if it has sufficient distributable reserves to be able to do so in other words the balance sheet shows sufficient accumulated profits to be able to pay the dividend out of.
AMC is a BVI Company so it is allowed to pay the special dividend as long as it meets the BVI solvency tests.
It is my view the special dividend is a return of capital but for a completely different reason than the reasoning that Geng has used.
The Hill tax case demonstrates the principle that what is a capital profit in the hands of a company does not make a payment of a dividend a capital repayment it is still income in the hands of shareholders.
The distinguishing feature in AMC’s case is that it does not have sufficient distributable retained profits from an English Law perspective to be able to pay the dividend but it does from a BVI Law perspective.
If you look at AMC’s last week interim accounts balance sheet you will see that the net assets are less than the total of the share capital and the reason for this is that AMC have made losses in every financial year since it was listed on the AIM market.
As the total of the share capital and reserves are less than the total share capital then the special dividend is being paid out of share capital.
When determining the distributable reserves from an English Law perspective it is necessary to look at AMC’s individual company balance sheet and not the AMC Group balance sheet which is shown in each years annual accounts.
There will not be much difference between the accumulated losses of AMC and the Group and the accumulated losses of AMC will be less than that of the AMC Group.
AGE
Gazzleberry no point communicating with him as he will defeat you by bringing you down to his level and he has many years of experience of operating at that level.
AGE
Geng you are clearly not an Accountant as you would have a better understanding of the basics of distributable profits!
AGE