What is a corporate action?
A corporate action (also known as a corporate event) is a material change that affects a company’s issued shares or debt – and as a consequence, its shareholders. Corporate actions are typically agreed upon by a company's board of directors, and then authorised by the shareholders. Examples of corporate actions include rights issues, open offers, offers for subscription and schemes of arrangement.
Some corporate actions are ‘voluntary’, meaning they require the shareholder to decide on a course of action. An example of a voluntary corporate action is a takeover.
Others are ‘mandatory’, meaning they’ll go ahead without any action required from the shareholder. An example of a mandatory corporate action is a merger.
If a corporate action takes place on your account, we'll send you a secure message. This will explain what the corporate action is, what you need to do about it (if anything), and how to confirm your chosen option. We’ll also let you know the deadline for when you need to make a decision.
You can read your secure messages by logging in and in the ‘My account’ menu, clicking 'Secure messages'.
- Do you make a charge for administering my corporate actions?
- What currency will my dividends be paid in?
- A share in my ISA is subject to a corporate action – are there any additional implications?
- How do I respond to a corporate action?
- Can I withdraw the cash received from a corporate action?
- What happens if I am late or do not respond to a corporate action?