CIRI shareholders interested in serving on a Shareholder Participation Committee (SPC) were asked to fill out and correctly answer a questionnaire consisting of the three questions below. A total of 270 questionnaires were completed. Below are the percentages of the questionnaires that were filled out correctly:
- Anchorage – 27 percent
- Alaska – 18 percent
- Lower 48 and Hawaii – 17 percent
1.Which of the following statements about CIRI’s resource revenue–or 7(j)–payments are true?
__T__ CIRI’s 7(j) distributions are paid as directed by Section 7(j) of ANCSA, and are based on resource revenues (oil, gas, timber, hard rock minerals, etc.) received from other regions in the prior year, as well as CIRI’s payments to other regions in the prior year.
__T__ 7(j) payments are not dividends or investment income and represent taxable income to shareholders.
__T__ CIRI’s 7(j) payments are typically made in early- to mid-April, with the amount calculated and announced shortly after CIRI’s annual audited financial statements for the prior year are approved.
__T__ In accordance with ANCSA, CIRI retains 50% of its share of resource revenues received, with the remaining 50 percent divided among at-large shareholders and CIRI village corporations.
__T__ Although ANCSA requires CIRI to pay resource revenue amounts associated with village-class shares to the associated village, it does not require distribution by the village corporations to their shareholders. That decision is made by the directors of the respective village corporations.
2. To eliminate any potential confusion, a shareholder who gives a gift of CIRI shares should consider updating his or her CIRI Stock Will.
3. Which of the following statements relative to CIRI dividends are true?
_____ CIRI’s dividend policy was unanimously adopted by the CIRI Board and is posted at ciri.com.
_____ The dividend policy calls for the total dividend payment to shareholders in any given year to be equal to 3.50 percent of the total shareholders’ equity, calculated as of Dec. 31 of the prior year, and to be paid out in four installments on such dates of record as approved by the CIRI Board.
_____ Once CIRI’s Board declares an actual distribution date and amount, the information is announced in the newsletter, at ciri.com and on the dividend hotline (907) 263-5100 or (800) 764-2435.
__X__ All of the above.