NIB HOLDINGS LIMITED(NHF)

At its AGM in 2017, NIB Holdings Limited passed a resolution revoking the payment of unclaimed dividends so that they are no longer payable to the shareholder and no longer need be reported as unclaimed to the NSW Revenue Office. The passing of this resolution circumvents the NSW Unclaimed Money Act and is particularly egregious because these unclaimed dividend entitlements never feature in a publicly searchable database which is the whole purpose of the Act. Obviously the shareholders affected by this measure had no vote on it and the vast majority of shareholders who did (see attachment for the biggest of them) are never likely to have unclaimed dividends. It also effectively means that those shareholders, or their children or grandchildren are unlikely to ever discover the underlying shareholding. You may have an entitlement that you have never been advised of because you had a policy with NIB Holdings Limited, NIB Life, NIB Health Funds or Newcastle Industrial Benefits or with other private health funds that were absorbed by the company prior to demutualisation. We are attaching a list of the names of shareholders in NIB Holdings who currently have unclaimed dividends. We also suggest you complain on behalf of the vast majority of all shareholders at each Annual General Meeting of the company until this resolution is reversed.

This company has a long history of disregarding its policyholders/shareholders. In 2009 the company conducted a sale of small parcels of shares affecting 57,000 of its shareholders. There is no evidence that the company placed any of the unclaimed proceeds arising from this sale with the appropriate authority. In 2010 the company cancelled 28.2 million shares belonging to former policy holders in the company, because it wrote to them 4 times and they didn't respond. Perhaps they had moved! The Corporations Act makes special provision for this contingency whereby companies may transfer such shares to ASIC so that shareholders or their children/grandchildren/executors can search and find their entitlements.

we understand that on or about this date the company made a capital return of 16.07 cents per share

we understand the cost base for each share received under the demutualisation of NIB is 85 cents and the date you acquired those shares is 1 October 2007 (you do not show a capital gain in your 2007-08 tax return because you received shares in NIB as a result of its demutualisation)