Corporate actions

What is a corporate action?

A corporate action is an event carried out by a listed company that may affect its structure or impact the value of your investment – making it relevant to shareholders.

Most corporate actions are approved by the company’s board of directors, though some require shareholder participation through a vote.

Common corporate actions that may affect your trading:

• Dividend or distribution payments

• Dividend Reinvestment Plans (DRPs)

• Stock splits

• Stock consolidations / reverse stock splits

• Unmarketable parcel share sale facilities

• Mergers and acquisitions

• Buy-backs

• Rights issues

Stake will handle certain corporate actions on your behalf – like dividends and stock splits. However, if any action is required from you, you’ll need to liaise directly with the relevant share registry, proxy partner or the company (Issuer).

We recommend approaching these events with caution. Make sure to do your own research and seek independent financial, legal and tax advice before making any decisions.

Stake may use reasonable endeavours to assist you, but we can’t guarantee this will be possible in every instance.