The UIC Board of Directors has recommended and developed a proposed settlement trust that will benefit both UIC and its Shareholders. If approved by the Shareholders, the trust will be known as the UIC Shareholder Trust. This UIC Shareholder Trust would be an independent legal entity and the UIC Board of Directors will automatically be the Trustees for the Trust.
Each UIC Shareholder will have the same number of Beneficiary Units (or Trust Units) in the UIC Shareholder Trust as the number of UIC shares that Shareholder owns. These Units in the UIC Shareholder Trust will follow the same rules as current UIC Stock in regards to the amounts of distributions made by the Trust (such as dividends), and in regards to heirship and gifting. Beneficiary or Trust Units in the UIC Shareholder Trust will work much in the same way as shares of UIC Stock currently work. For example, a person who owns 100 shares of UIC Stock eligible for dividends will similarly have 100 Trust Units eligible for cash distributions. In addition, Trust Units will be transferred along with shares through heirship or gifting.
The initial, primary benefit provided to all UIC Shareholders from the UIC Shareholder Trust would be tax-free distributions. Additional Benefits that could be provided in the future from the UIC Shareholder Trust may include benefits and programs promoting the health, education and welfare of Natives and immediate families. Contributions to the UIC Shareholder Trust (for example, to fund cash distributions) will be approved by the UIC Board of Directors and will be tax deductible by UIC, saving UIC significant taxes.
UIC’s Shareholders will vote at the 2020 Annual Meeting whether to establish the UIC Shareholder Trust as a settlement trust under ANCSA. A majority of UIC Shareholders present (by proxy) at the 2020 Annual Meeting must vote YES to establish the UIC Shareholder Trust as an ANCSA settlement trust. The UIC Board of Directors recommends that shareholders vote YES to establish this beneficial trust.
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