Corporate Actions
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Fyshe Horton Finney Ltd has a specialist team dedicated to processing corporate actions, ensuring a streamlined, automated approach to complete, timely and accurate event processing.
NOTE: The Corporate Actions service is only available to those clients who take advantage of our nominee service.
Fyshe Horton Finney Ltd will ensure all aspects of the corporate actions process is dealt with efficiently and effectively.Once we have notification of a corporate action, our professionally trained team will gather all the relevant information. Each client’s entitlement or cash offer will be calculated and we will inform you directly. You will be provided with the options you have and the deadline on which a decision should be made, once we have received a decision from you a payment or claim will be made to your account. Finally we will reconcile your account, ensuring all aspects of the action have been carried out successfully.
A corporate action is an event initiated by a public company that affects the securities (equity or debt) issued by the company.
The primary reasons for a company to use corporate actions are:
- Return of profits to shareholders- cash dividends, capital re-organisation
- Influence the share price- stock splits, reverse stock splits, buybacks
- Corporate restructuring- merger, spin off, take-over
There are different types of corporate action which can occur:-
A Mandatory Corporate Action is an event initiated by the board of directors of the corporation that effects all shareholders, participation is mandatory for shareholders in this case. Examples of Mandatory Corporate Actions are Stock splits, Mergers, Return of capital, Bonus Issues, Spin Offs & Consolidations.
A Voluntary Corporate Action is an action where the shareholders elect to participate in the action; a response is then required to process the action. Examples of Voluntary Corporate Actions are Tender Offers, Rights Issues and Subscription offers.