They are sitting on a pile of franking credits (and capital...

They are sitting on a pile of franking credits (and capital losses), and are keen for shareholders to benefit from these. At the same time though, they want to reinvest a fair chunk of their free cash flow back into the business.

One shareholder at the meeting suggested paying dividends in the form of shares only (via DRP), ie. no cash dividend option - which could achieve both goals. Nobody at the meeting was sure if this is permitted under australian tax laws, but the board said they'd investigate.

If such arrangements are permitted, that option would be fine with me, but equally I'm with mal85 - ie. profits surplus to business-building requirements are likely to come in their own good time (perhaps sooner than anyone is really expecting), and the franking credits can be used to benefit shareholders then. There's no hurry imo.