THE R.O.C. TAIWAN ANNOUNCES DIVIDEND
THE R.O.C. TAIWAN ANNOUNCES DIVIDEND NEW YORK, Dec. 2 /PRNewswire/ -- The R.O.C. Taiwan Fund (NYSE: ROC)
today declared a dividend of 75 cents per share, payable on Jan. 10, 1992, to all shareholders of record on Dec. 16, 1991.
The dividend, which will be paid entirely in cash and is not eligible for reinvestment pursuant to the fund's dividend reinvestment plan, represents a distribution from the fund's accumulated undistributed net profits, from the sale of securities, or capital gains, calculated according to United States generally accepted accounting principles (GAAP). The dividend is not taxable dividend for U.S. federal income tax purposes, but instead will reduce each U.S. shareholder's tax basis in his shares and, to the extent (if any) in excess of such basis, will be taxable as if it were gain from the sale or exchange of such shares. In order to retain its status as a regulated investment company for U.S. federal income tax purposes and to avoid a U.S. excise tax on undistributed income, the fund is required to pay certain ordinary income dividends, as well as capital gains distributions out of net taxable gains realized since May 1989 when the fund's predecessor, the Taiwan (R.O.C.) Fund, was reorganized into the fund. Accordingly, the fund's stated dividend policy has been -- and will continue to be -- to distribute, no less frequently than annually, all of the fund's ordinary income and net capital gains, if any, as calculated for U.S. federal income tax purposes. The dividend declared today is not required in order to comply with the fund's stated dividend policy, and dividends may not be so required in future years due, among other things, to significant differences in the calculation of the fund's capital gains and losses for U.S. tax and GAAP purposes, respectively. In light of these differences, which are attributable to the reorganization in 1989, the trustees also determined that they would consider in the future whether to declare a dividend in any year when a distribution is not required by such policy. In addition, the trustees will consider whether the fund should make an additional distribution in any year when the required distribution is smaller than the trustees consider to be appropriate. Such future decisions will take into account the interests of the trust's shareholders and relevant business considerations. The board of trustees has also authorized management of the fund to consider listing the fund's shares on the Osaka Stock Exchange. Such a listing would be in addition to the fund's current listing on the New York Stock Exchange. In July of this year the fund announced that the board of trustees had authorized the fund to repurchase up to $10 million worth of its shares from time to time pursuant to a repurchase program complying with the provisions of Rule 10b-18 under the U.S. Securities Exchange Act. During the third quarter the fund began to repurchase its own shares, and through Nov. 30 the fund had purchased approximately 170,000 shares at an average price of $9.81 per share. The fund may continue to repurchase shares in the future when the fund's shares are selling on the New York Stock Exchange at a discount to net asset value. The R.O.C. Taiwan Fund is the oldest and largest fund organized for investment in securities of R.O.C. issuers by non-R.O.C. investors. The fund's investment adviser and manager is International Investment Trust Company Limited, the first of four currently authorized securities investment trust enterprises formed to raise and manage trust funds for investment in R.O.C. securities. -0- 12/2/91 /CONTACT: Steven R. Champion of International Investment Trust Company, 011-886-2-713-7702; or Steve Kennedy or George Arvantides of Dewe Rogerson, 212-688-6840/ (ROC) CO: R.O.C. Taiwan Fund ST: New York IN: FIN SU: DIV SM-SH -- NY054 -- 8432 12/02/91 14:42 EST
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|Date:||Dec 2, 1991|
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