How to frank a distribution made to members
There is no formal election process a co-operative company must follow if it chooses to frank a distribution it makes to its members. It simply allocates franking credits to a distribution in the same way as other corporate tax entities.
Where a co-operative company makes a distribution to its members and allocates some franking credits to this distribution, it is required to provide a distribution statement, in the approved form, to members. The distribution statement will provide evidence of the extent to which a distribution has been franked.