What is the LCIP? The LCIP is a pu...

What is the LCIP?

The LCIP is a put of Shareowner-Sponsored Dividend Reinvestment Plans ("Shareowner DRPs") which are share purchase and dividend reinvestment plans sponsored and administered from the Canadian Shareowners Association.

Through a Shareowner DRP CSA members can:

begin buying shares of Canadian and U companies and stock market index stocks with modest initial investments;

automatically reinvest dividends through purchasing more shares;

purchase more shares with optional amounts small enough to fit in the greatest degree budgets;

purchase shares in succession a regular monthly or quarterly schedule;

construct a portfolio with international diversification;

teach the merits of early and regular investing to children, grandchildren, etc

Upon joining the CSA, and periodically, each member receives a transcript of the "Information Circular" for the Shareowner DRP which provides undivided details of its operations.

Who Can Participate in a Shareowner DRP?

Individual and coterie members of the CSA can join a Shareowner DRP for any of the securities contained in the list onward page 9. You simply whole the Shareowner DRP Enrolment and Authorization Form (pages 9 and 10) and depute in your initial investment(s).

How greatly is an "Initial Investment"?

Shareowner DRP allow an initial investment of as little as $50 and as earnestly as $2,500. Afterwards, you can purchase a monthly minimum of $50 and a monthly maximum of $2500 You decide to what extent often and how much to invest. In addition, Pre-Authorized Investing is available for Shareowner DRP (see side-bar upon page 7).

Initial and optional investments must be received by way of the CSA at least three business days prior to the "investment period" for a security (please diocese Note 4 on page 9)

As an alternate to an initial investment of cash, you may deposit a share certificate for the same of the securities listed forward page 9 into a Shareowner DRP-or have shares transferred electronically from a Canadian brokerage account. To do to such a degree when completing the Enrolment and Authorization Form, write the word "Certificate" (or "Transfer" as applicable) in the space provided for indicating the size of the initial investment.

Mail the Form and the set-up recompense to the CSA. You will receive specific directions for forwarding the certificate (or transferring the shares) to the CSA's DRP Investors' Trust Account.

Can I Transfer Shares to a RRSP or Canadian Brokerage Account?

Shares of a DRP Security may be transferred electronically from a Shareowner DRP to a member's Registered Retirement Savings Plan ("RRSP") or Canadian brokerage account on the subject of receipt by the CSA of a signed transfer ask for

The request must include the following information: the number of shares to be transferred; the name and address of the financial institution to receive the shares; and, the member's account number at the financial institution.

Please allow 20 working days to perfect the transfer.

What are the Services Fees?

Service unconditional tenures are set to recover take away froms only. The principal fees are: $12 to set-up a Shareowner DRP account; $4 to make an optional cash investment; $12 to vend shares; $12 to transfer shares to an RRSP or other account; and, 5 cent for share purchased or sold. Please view the Information Circular for details. Dividend reinvestment is free!

What about the safe-keeping of cash and securities? Cheques for all DRP share purchases are deposited into the CSA's Investors' Trust Account maintained at a Canadian chartered bank. When lacked to purchase securities, funds are transferred to the CSA's Investors' Trust Account at a brokerage firm be in possession ofed by a Canadian chartered bank. Shares are purchased by the agency of the broker and held in the name of the bank's nominee at the applicable Canadian or U Depository for Securities. Shares are registered in a participant's name in succession the CSA's register of shareowners.

How do I know by what mode many shares I own?

A cumulative DRP account statement (showing be in possession ofed shares to four decimal places) is mailed to participants after the conclusion of each month in which there has been an initial or optional investment; a transfer or sale of shares; and after the period of each year. Details about the reinvestment of dividends for each DRP are reported in succession Page 4 in each issue of Canadian Shareowner. deliberate together the Information Circular to order statements following each dividend reinvestment.

How do I vend my DRP shares?

DRP shares are sold by means of notifying the CSA in writing of your intentions at least three business days prior to the start of the "investment period" for a security (please behold Note 4 on page 9) total details about the operation of a Shareowner DRP are contained in the Information Circular.

For further information contact the CSA at: 2 Carlton highway Suite 1317 Toronto, ON MSB 1J3

Phone: (416) 595-9600 Fax: (416) 595-0400

Copyright Canadian Shareowner Magazine Inc. Sep/Oct 1997

Provided according to ProQuest Information and Learning Company. All rights Reserved