Here is my understanding of it. It assumes Irish resident individual shareholders. (Shares held in pension funds or held by non-Irish investors are not covered by this).
How should I vote at the EGM?
You don't need to. The EGM is just to approve the scheme. It will be passed.
If you do nothing, which is what most people should do...
If you do nothing, you will receive a capital payment of 29.42 cents per share sometime before the 16th November.
This will be subject to Capital Gains Tax as if you had sold some shares.
On 17th November, you will receive 39 new ordinary shares for every 40 shares you currently own. When you receive the new shares, you should tear up the old shares.
How will my Capital Gains Tax liability be calculated?
You will be deemed to have disposed of 1/40th of your shareholding
Let's say you bought 4,000 shares at €10 per share or €40,000
Thanks to Rob Oyle for correcting my initial answer to this question.
In what circumstances should I take the income option?
The only case in which you would be better off taking the shares as income would be if you had no other taxable income or taxable income below the annual tax credit. If you are paying tax at 20% or 41%, you should go for the Capital Redemption option.