Frequently Asked Questions

What Is The Tax Position When Investing in Mirrabooka?

All of Mirrabooka's dividends to date have been fully franked, potentially enabling shareholders to offset the franking credits received against their own income. Recent changes to the imputation system also allow refund of franking credits to shareholders whose marginal tax rate is less than the Company tax rate.

Further, since Mirrabooka meets the definition of a Listed Investment Company for tax purposes, it is also able to pass through to shareholders tax benefits when available in respect of capital gains which the Company makes on securities held more than one year. The effect of these tax benefits is to potentially put the shareholder in the same position as if they had sold these assets personally so that half of the capital gain would be tax free.

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What Is The Role Of The Board?

The role of the Board of Directors is to set goals and policies for the operation of the Company, to oversee the Company's management, to regularly review performance and to generally monitor the Company's affairs in the best interests of its shareholders. For these responsibilities, the Board is accountable to its shareholders.

The Board has been supervising the Company to meet its primary performance aims:

  • to provide medium to long term investment gains through holding core investments in selected small and medium sized companies ; and
  • to provide attractive dividend returns to shareholders from these investments.

The Board comprises a non-executive Chairman, Managing Director and three non-executive directors, all of whom have a personal financial interest in the Company.

The directors meet formally as a Board at least 11 times per year. Additional commitment of time is also required for the various Committee activities.

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What Is The Role Of The Investment Committee?

The Investment Committee comprises TA Campbell (Chairman), RE Barker, G Sinclair and DE Meiklejohn. The Investment Committee reviews all investment orders and transactions, trading portfolio share and option transactions, the performance of investments, sets investment policies, reviews sub-underwriting offers and deals with other portfolio related activities such as voting instructions and lodgement of proxies. The Committee meets regularly (normally fortnightly).

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What are the risks in investing in Mirrabooka?

Investing in the small to mid cap sector can be subject to greater volatility compared with investing in larger capitalised companies may because of the reliance these smaller companies have on single markets, products and/or key individuals. From time to time, shares in these smaller companies may also be subject to lower than normal liquidity.

In this context the Company does not seek to avoid risk but to manage it appropriately by having a well diversified portfolio and by ensuring any single investment does not represent a high valuation risk relative to the overall size of the portfolio. The Company is also willing to move quickly to address risk issues and to make changes to the portfolio should there be a material change in a company's prospects or where investments look significantly overvalued.

Mirrabooka also avoids the more speculative and volatile area of the small to mid cap market as it focuses on companies that provide medium to long term value, including good dividend returns.

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How Does Mirrabooka Make Its Investment Decisions?

The Company's investment decisions are made by the Investment Team which includes the Managing Director and are reviewed by the Investment Committee, which usually meets fortnightly.

In addition, because of the breadth and diversity of this area of the market, a large number of stockbrokers cover specific companies or sectors.

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