We get a lot of questions surrounding corporate events (also known as corporate actions or important notifications). Where possible we’ll notify you as and when these happen on your investments.
Once logged into your account you can find any corporate event either past or present by clicking ‘Account Management’ and then ‘Important Notifications’.
We’ve set out to answer your most frequently asked questions on corporate events below:
The value of your investment(s) will always depend on stock market activity and the price per stock. When a rights issue takes place shareholders are given the option to purchase additional shares at discounted prices. If you choose to take up the rights, you’ll be allocated new shares on receipt of your payment and completion of the event, these shares will become ordinary shares and will be tradable at the current market price.
By not taking up the rights you will not lose any shares, rights are offered by a company at a discounted price in addition to your existing shares.
Please note, while you won’t lose any existing shares your share holding will become more diluted as there will be more shares on a stock market.
When a company announces a rights issue, holders of the stock will be issued ‘nil paid rights’ which each represent a ‘right’ to buy a new share.
As these ‘nil paid rights’ are tradable on the stock market, they are appointed a value using the book cost of your total share holding.
If you choose to take up your ‘rights’ and purchase additional shares, the new shares will be given a book cost which includes both the discounted offer price you paid and the stock market value of the nil paid rights.
If you choose not to take up your rights and allow them to lapse, the book cost deducted at the beginning will not be reaccredited and will instead be reflected as a loss against the book cost. However, this may be balanced by the receipt of Lapsed Proceeds on completion of the Rights Issue.
This means that the company is proposing to cancel or has cancelled the listing of its shares on the stock market.
We will contact you by email or letter with further details if this happens to any of your investments.
Please note, we do not send out communications when a company’s stock suspended however, if we receive any information such as a notice of administration then we will contact you.
I have accepted an offer to sell my shares. When will I receive payment?
Takeovers are reliant on shareholders accepting an offer by a bidding company. The offer will usually consist of money and/or shares in their company in exchange for your existing shares. This company will need to reach a pre-agreed percentage of total shareholders to agree to their offer before they can declare their takeover bid as 'unconditional in all respects’.
I had accepted the offer before it was 'unconditional in all respects‘
If you agreed before the offer was declared ‘unconditional in all respects’, you will receive your cash 10 working days from when we instruct the company’s registrars. Please note: for each acceptance we combine your instructions with those of other customers so it will be approximately 10 working days from the advice date of the event.
I did not accept the offer
Once the offer is declared ‘unconditional in all respects’ we will write out to you and give you the opportunity to agree to the terms of the takeover.
If you agree to the terms of the takeover you will usually receive the money within ten working days from the date we receive your instruction. This money will be transferred into your share dealing account.
If you agreed before the offer was declared unconditional in all respects, you will receive your cash 10 working days from when we instruct the company's registrars.
Please note, for each acceptance we combine your instructions with those of other customers, it will be approximately 10 working days from the advice date of the corporate event which you elected on. Once the offer is declared 'unconditional in all respects' we will write out to you and give you the opportunity to agree to the terms of the takeover.
If you agree to the terms of the takeover you will usually receive the money within ten working days from the date we receive your instruction, this is then transferred into your share dealing account.
You can call us on 0345 606 11 88.
Want to vote in the AGM?
If you’d like to register for this service you’ll need to contact us on 0345 606 11 88.
We will forward you notifications for all companies where you hold stock as and when they are received by Bank of Scotland Share Dealing.
You can choose to either attend the meeting yourself or send us your voting instructions which we will submit on your behalf