In 1994, the Kootznoowoo Permanent Fund Settlement Trust (KPFST) was established as an independent, irrevocable entity. Since then, it has provided consistent distributions separate from the Corporation’s financial performance. Shareholders have benefited from these tax-free payments, along with tax-free corporate distributions paid through the Trust. The creation of the Trust reflects the strong financial foresight of the Board of Directors at that time.
Under the KPFST agreement, shareholders must now vote on whether the Trust should continue or be dissolved. If dissolved, one-half of the Trust assets would be distributed to shareholders and the remaining half distributed to the Corporation.
While some believe dissolution could provide a short-term financial benefit, it is the position of management that dissolving the Trust would negatively impact future generations by eliminating not only reliable distributions, but also long-term opportunities the Trust was intended to preserve. As a result, management strongly recommends shareholders vote “No” on this resolution on their proxy.
We encourage shareholders to view the Trust as a long-term asset and benefit. As the Corporation continues to pursue growth opportunities and build long-term financial stability, the Trust will continue to provide ongoing, modest distributions while we work to strengthen opportunities for the future, consistent with the Board’s original vision for the Trust.
We are honored to continue working to protect Kootznoowoo’s culture and increase shareholder value. Our staff works diligently each day to address shareholder concerns and support our community. We look forward to continuing our relationship with the Trust in the years ahead.
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