Questions and Answers

Question 1 What is eDividend?

Answer  eDividend is a service which allows an issuer to electronically pay your
cash dividend entitlements directly into your bank account instead of making payment via bank cheques.

Question 2 What do I have to do?

Answer As a depositor, you have to provide your bank account information to
Bursa Depository.

Question 3 Why eDividend?

Answer 

· Faster access to dividends which are credited directly into your bank account
· Convenience – eliminates the need to go to a bank
· One-off provision of bank account details for all listed issuers on Bursa Malaysia
· Better account management with the option to consolidate the dividends from all your CDS accounts into one bank account
· Misplaced, lost or expired cheques will no longer be an issue

Question 4 When can I start providing my bank account information for eDividend?

Answer You can start providing your bank account information to your Authorised Depository Agent (ADA) (referred to in this FAQ as your “stock broker”) from 19 April 2010 and you have a grace period of one year, until 18 April 2011 to provide such information. The sooner you provide your bank account information, the sooner you will be able to benefit from the advantages of eDividend.

Question 5  Who will have my bank account number?

Answer Your stockbroker to whom you passed the number, the Share Registrar, Bursa and your Company.  However, each of these companies is bound by obligations to keep your account number confidential under the laws.

Question 6 How much are the charges?

Answer The banks have not worked out the actual charges yet but it is likely that the charges will be borne by your Company as the payer.

Question 7 What happens after that one year grace period?

Answer After that one year grace period, depositors who have not provided their bank account information will not be able to benefit from receiving their dividends in a timely, effective and efficient manner. Moreover, depositors will have to bear an administrative fee when they provide their bank account information to their stock brokers after the one year grace period.

Question 8 How do I provide my bank account information for eDividend?

Answer You must complete the relevant prescribed form and submit it together with the required supporting documents at your stock broker’s office where your CDS account is maintained.

 Note: If you are unable to be present at the stock broker’s office, the signing of the relevant prescribed form and the supporting documents must be witnessed by an acceptable witness specified by Bursa Depository. An acceptable witness includes an Authorised Officer of your stock broker, a Dealer’s representative, a notary public, or an authorised officer of Malaysian Embassy/High Commission. Once signed accordingly, the document should be submitted to your stock broker.

Question 9 What supporting documents are required?

Answer If you are an individual depositor, when providing your bank account information for eDividend, bring along:-

(i) Original documents for verification.
(ii) Copy of Identification documents i.e. NRIC, Passport, Authority Card or other acceptable identification documents.
(iii) Copy of your bank statement/ bank saving book/ details of your bank account obtained from your bank’s website that has been certified by your bank/ copy of the letter from your bank confirming your bank account details.

If you are a corporate depositor, you are required to submit the following documents when providing your bank account details:
(i) Certified true copy of Certificate of Incorporation/ Certificate of Registration.
(ii) Certified true copy of your bank statement/ bank savings book/details of your bank account obtained from your bank’s website/any letter from bank confirming your bank account details. In the case of a bank savings book or bank statement, for the purpose of confidentiality, you are advised to show to your stock broker only the part containing your bank account particulars when providing your bank account information for eDividend.

Question 10  Is there any restriction on the type of bank account that can be assigned for the purposes of eDividend?

Answer You are allowed to provide the details of existing active savings or current accounts maintained with a local bank that is under your name or in the case of a joint account, has your name as one of the account holders.

Question 11  Can I provide bank account information of a bank that is located overseas?

Answer  No, you must provide details of a bank account maintained with a financial institution that are offering MEPS Inter-Bank GIRO (IBG) service. A current list of IBG members can be located via the following website http://www.meps.com.my/faq/interbank_giro.asp?id=2#answer - opens in new window

Question 12  Can I change my bank account information provided for eDividend?

Answer  Yes, you are allowed to change your bank account details by submitting the relevant prescribed form together with the relevant supporting documents substantiating your request to your stock broker. There will be no cost charged to you for changing or updating your bank account details.

Question 13 How will I receive my dividends for those shares held in my CDS accounts if I have not provided my bank account information?

Answer If you have not provided your bank account information, you will not be able to benefit from receiving your dividends in a timely, effective and efficient manner. You will then be paid your cash dividend entitlements through an existing manner as authorised under the issuer’s Articles of Association.

Question 14 When will listed issuers be required to pay dividends via eDividend to their shareholders?

Answer All listed issuers who announce a books closing date for dividend entitlements on or after 1 September 2010 are required to pay dividends via eDividend to their shareholders who have provided their bank account information to Bursa Depository.

Question 15 When will my bank account be credited with my dividend entitlement?

Answer Dividends will be paid by the issuer on the payment date. Generally, your dividend will be credited into your bank account within the same day of payment depending on your bank's processes.

Question 16 How will my bank account information be used and will it remain confidential?

Answer Your bank account details and other related information:

(i) will be used solely for the purpose of enabling dividend payments to be credited directly into your bank account and for other purposes relevant for eDividend e.g. using your email address to send notifications to you;

(ii) will only be provided to those persons necessary to facilitate the payment of your dividends via eDividend e.g. the issuers, share registrars and the appointed paying banks; and

(iii) is protected under the Securities Industry (Central Depositories) Act 1991 that strictly prohibits the disclosure of such information to any person unless you expressly authorise the disclosure in writing. All the parties, including those parties referred to in item above, are compelled to strictly adhere to these provisions. It should be noted that by signing the relevant form to provide your bank account information, you will be authorising the disclosure of your bank account information to these parties.

Question 17 What will happen to my dividend if the payment cannot be credited into my bank account?

Answer  If the dividend cannot be credited into your bank account due to any reason whatsoever (for example due to an incorrect bank account number, a closed bank account or an inactive bank account), you will be contacted by Bursa Depository to validate your bank account details with your stock brokers. Arrangements will be made by the issuer to pay dividends using an existing manner as authorised under the listed issuer’s Articles of Association.

Question 18 Will I be notified that my application for eDividend has been successful?

Answer Bursa Depository will send a confirmation by posting a computer generated notice to your correspondence address as specified in your CDS account details. The confirmation will also include your bank account information which you have provided in the relevant prescribed form for providing your bank account information, for verification.

Question 19 Will I still receive my dividend tax voucher?

Answer Yes, you will continue to receive your tax voucher so long as it is required under the law.

Question 20 Will I be notified once the listed issuer has paid the dividend?

Answer Yes, you will be notified electronically once the listed issuer has paid the dividend out of its account if you have provided your email address. You are also encouraged to provide your mobile phone number for SMS notification, which will be provided at the discretion of the listed issuers. Nevertheless you will still receive your tax vouchers as long as the law requires it.

Question 21 Can I choose to discontinue receiving dividends via eDividend?

Answer No, you are not allowed to discontinue receiving dividends via eDividend once you have provided your bank account information for the purposes of eDividend.

Question 22 What if my CDS account is held in the name of a nominee?

Answer If your CDS account is held in the name of a nominee, the depositor entitled to provide the bank account information for eDividend will be the nominee.

Question 23 Do I need to provide bank account information separately for eDividend for each of my CDS accounts if I have more than one CDS account?

Answer If you want all dividend payments arising from shares held in your CDS accounts to be credited into the same bank account, you can request for consolidation of all of your CDS accounts for dividend payment at the point of providing your bank account information for eDividend. You can also opt to assign different bank accounts for each of your CDS accounts. In this case, you will need to provide your bank account information separately for each of the CDS accounts at the respective stock brokers where your CDS accounts are maintained

Question 24 Do I need to provide my bank account information again when opening a new CDS account after having provided my bank account information earlier and consolidating my CDS accounts?

Answer No, once you have provided your bank account information for eDividend and opted for consolidation, your bank account details under your existing CDS accounts will be automatically assigned to your new CDS account. However, if you had provided your bank account information for eDividend and had not opted for the consolidation feature, you will need to provide your bank account information every time you open a new CDS account.

Question 25 Can I opt to consolidate all my CDS accounts for the purpose of eDividend after initially opting to have different bank accounts assigned to my various CDS accounts?

Answer Yes, however you will need to decide and assign only one bank account to receive all the dividend payment arising from shares held in all your various CDS accounts. You will be able to perform the consolidation at the stock broker’s office where you maintain a CDS account that your bank account has been assigned for the purpose of e-Dividend.

Question 26 Do I need to provide my bank account information for eDividend to Bursa Depository if I have already been receiving my dividends from listed issuers who are currently providing payment of dividends via electronic means?

Answer Yes, you will still be required to provide your bank account information to your stock broker. These FAQs are meant to provide general information about the eDividend services that shall be provided by Bursa Malaysia Berhad.

Whilst Bursa Malaysia Berhad has used reasonable endeavours to ensure that information contained in this document are accurate and correct, the provision of information in this document is provided on an “as is” basis without any representations or warranties of any kind. Bursa Malaysia Berhad disclaims any and all liability in respect of any claim arising out of or relating to these FAQs.

These FAQs shall be read in conjunction with the relevant terms and conditions, laws, regulations and rules pertaining to the eDividend services which are available at Bursa Malaysia Berhad’s website at www.bursamalaysia.com - opens in new window 

Question 27 What if I wish to continue receive dividend by cheque?

Answer This is still possible as there is currently no deadline for the full implementation of e-dividend.  If you do not register your bank account number with Bursa (through your stockbroker), you will continue to receive dividend by cheque.  However, if you register your bank account number with Bursa later than 18 April 2011, you may be charged an admin fee by Bursa.

Question 28 I tried to call the phone numbers indicated in your letter on e-dividend but they did not work. Were we given the wrong numbers?

Answer The general line number, that is 03-7841 8000, as shown in the e-dividend letter, is the  correct number to call.   The 3 other numbers i.e. 03- 7841 7094/95/96 are hunting line numbers.  We suggest you call the general line and state the Company's name so as your call can be addressed by the correct personnel.

Question 29 Why didn’t SRC make any announcement to its shareholders?

Answer The announcement or the letter has been delivered to all shareholders together with 2009’s annual report. The letter describes briefly on what is E-dividend and also the steps that need to be taken by shareholders.

Question  Why is the actual amount of the Company’s crude oil purchases from Sabah Shell Petroleum Company Ltd (item 7) in the Circular to Shareholders  higher than the approved shareholder mandate in 2009?

Answer In 2009 more crude was purchased directly from Malaysia via Sabah Shell Petroleum Company Ltd due to economic attractiveness.  The Company benefits from seller’s export duty savings which results in lower purchase price.  As the actual value exceeded 10% of the estimated value, pursuant to Para. 10.09(2)(e) of the Listing Requirements, there was an announcement to Bursa on this matter  dated 5 February 2010, to notify the shareholders on the exceeding of mandate for these transactions coupled with full reasoning and explanations.

Question  Why is the actual amount of the Company’s payment for central management and administrative services from Shell International Petroleum Company (item 14) in the Circular to Shareholders higher than the approved shareholder mandate in 2009?

Answer  In late 2009, there was a change in billing process between Shell Global Solutions International BV (SGSI) and Shell International Petroleum Company (SIPC).  The change involves all charges for research and development and technical service fees from SGSI to be routed via SIPC, thus increasing the actual amount paid to SIPC for the year.  An announcement to Bursa was made pursuant to Para. 10.09(2)(e) of the Listing Requirements, dated 24 February 2010 on this matter as the actual value exceeded 10% of the estimated value set out in the Circular.

Question  How would the Board optimise the Company’s cash flow position given that the final repayment for the term loan amounting to USD140 million will fall due on 15th June 2010?

Answer   The loan maturity and cash optimisation is managed in tandem with the Company's commitment to operate a reliable and profitable plant.

The Company's Management and Directors undertook an extensive exercise to assess the current and forecasted cash flow position of the Company, taking into account the current refining margin environment, refining margin forecasts as well as the Company's future working capital, gearing, dividend and capital/operating expenditure requirements, in managing the Company's cash flow with the purpose of ensuring sufficient liquidity and cash optimisation. 

In preparing for the full repayment of the said USD140 million term loan, the Board has assessed the options available to the Company, and will be making the appropriate announcement in due course.