Share Registry FAQs

There are often many questions that as a shareholder, you may have about share related issues. The following questions and answers are some that we are frequently asked at the Share Registry.

CHESS
If you are a shareholder of the National, or are thinking of becoming one, you should know about CHESS, the Clearing House Electronic Subregister System, developed by the Australian Securities Exchange.

CHESS allows titles to be electronically transferred between buyers and sellers of securities which are traded on the Exchange (ASX).

CHESS allows the electronic transfer of money between CHESS participants (such as stockbrokers and institutional investors) in exchange for securities.

CHESS was developed with a number of objectives in mind:

• reduced settlement risk through faster settlement;
• predictable receipt of proceeds or title following a trade;
• predictable settlement during high volume periods;
• an internationally competitive market and
• reduced costs through increased efficiency.

CHESS works through a sponsorship process where an investor appoints an authorised agent - usually a stockbroker and commonly known as a sponsor to act on the investor's behalf.

Transactions against holdings on the CHESS subregister are done via electronic computer messages, but it is not practical for individual investors to have direct electronic access to CHESS. For this reason, individual investors are generally sponsored by their stockbroker who has the necessary electronic access to CHESS. Other CHESS participants, such as trustee companies, may also act as sponsors. There are alternatives to CHESS sponsorship and they are detailed below.

To be sponsored, the investor must enter into a formal agreement with a sponsor. This agreement sets down the terms and conditions under which the sponsor will operate the CHESS holdings. While ASX Settlement and Transfer Corporation (ASTC) specifies certain issues which must be contained within the agreement, terms and conditions may vary between sponsors. Some aspects may also be varied by mutual agreement between the investor and the sponsor.

• How do I transfer shares?
  Should your shares be held on our Victorian register, you have two choices in transferring shares. You can transfer on market, via a broker who will find a buyer for your shares. Alternatively, where you already have a buyer, you can transfer Off Market using a Standard transfer from. Shares held on the Great Britain register may also be transferred using a UK broker. However, for Off Market transfers, a UK Stock Transfer form must be used. Details of stamp duty are detailed on its reverse. The Inland Revenue Office will also need to assess these documents where the transfer is not exempt from duty.

• Is it necessary to be sponsored by a broker under the CHESS system?
  No. Sponsorship by a broker is purely a personal choice.

• What is Issuer Sponsorship?
  This is a facility which enables investors to hold securities in uncertificated form. It provides you with the advantage of uncertificated holdings without the need to be sponsored by any particular third party. By providing your Security Holder Reference Number (SRN) to the broker at the time of sale or purchase, you have the freedom and convenience of choice.

• Is the National offering Issuer Sponsorship?
  Yes. Issuer Sponsorship is available to shareholders of the National.