NAB Shares for Charity
16 December 2015 at 10:00 am
National Australia Bank and ShareGift Australia have partnered to allow shareholders to give their share sale proceeds directly to charity.
The move comes as NAB progresses with the demerger of its UK bank subsidiary, Clydesdale Banking Group, where eligible NAB shareholders will be entitled to one Clydesdale security for every four NAB shares owned.
NAB said the partnership offered holders of small parcels of shares – those who hold 2,000 NAB shares or less – a convenient and cost effective way to gift their Clydesdale Bank securities to charity if they wished.
ShareGift Australia is a Not for Profit organisation that gives shareholders a way to donate shares or cash proceeds to the community.
ShareGift Australia said that to date, more than $1 million of charitable giving had been facilitated by and donated to over 390 charities.
NAB described the partnership as setting a precedent in Australia for incorporating charitable giving into large corporate transactions.
“This innovative arrangement is the first of its kind in Australia. It demonstrates NAB's commitment to building stronger and more prosperous communities, and provides our shareholders with the opportunity to participate in a new form of charitable giving,” NAB Group Executive Governance and Reputation Michaela Healey said.
Chairman of ShareGift Australia, Christopher Thorn, welcomed NAB's initiative on doing the right thing in a transaction of this size.
“NAB's leadership in giving shareholders this option to donate small parcels of shares sets a fine example for others. We hope this will act as an incentive for other ASX listed companies to use ShareGift Australia as part of their corporate transactions,” Thorn said.
Thorn said the sale proceeds donated to ShareGift Australia as part of this arrangement would be distributed to eligible charities supporting people experiencing social exclusion and financial hardship.
A list of recipient charities will be published on the ShareGift website following completion of the demerger transaction.