Corporate Actions Overview

Table of Contents

Corporate Actions

For approved financial products,the CSP will receive notifications of the relevant Corporate Action details from the Issuer's market announcement disseminated via the Corporate Actions straight-through process (STP) data feed. Information disseminated triggers corporate action processing events in the CSP.

The current ASX protocol for both approved and non-approved financial products is a two business day settlement period and where relevant a two business day ex-period for corporate actions.

Both the CSP and Issuer-sponsored Sub-registers provide for the concurrent registration of cum and ex transactions. During the ex period, all transactions must be designated either cum or ex for each corporate action in progress. For more details, refer to the Basis of Movement section.

Whilst the 'basis of quotation' could be received from the AMO on a Trade Report, the CSP records a 'basis of movement', for the purpose of settlement.


Corporate Action Events

EventOverviewRelated LifecycleRelated Functional SpecificationRelated Message Specification
Off-Market Takeover and Off-Market Buy-back (Bid Offer)

An Off-Market Takeover is a Corporate Action Event under Chapter 6 of the Corporations Act 2001 (Cth) that allows an Offeror to make an Offer to a shareholder (which can be facilitated by the Controlling Participant) to acquire their securities.

An Off-Market Buy-back is a Corporate Action Event under Chapter 2J (Part 2J.1, Div 2) of the Corporations Act 2001 (Cth) that allows a company, under certain circumstances, to buy-back their own securities. This results in that portion of the issued capital being cancelled.

The process is enabled by the following processes: 

Off-Market Takeovers and Off-Market Buy-backs (Bid Offers) LifecycleTakeovers and Buy-backs (Bid Offers) Overview
Bonus, Capital Return, Dividend, Interest Payment

A Bonus Issue is an issue of securities on a Free of Payment (FoP) basis to existing eligible holders of a security (termed the "Parent Security"). Securities are issued on a pro-rata basis, in accordance with the registered holdings of the Parent Security as at the specified Record Date.

A Capital Return, also known as a capital repayment, can be paid in cash, securities or a combination of both. For a Capital Return paid in securities, the process is similar to a Bonus Issue. For a Capital Return paid in cash, the process is similar to Dividends.

Dividend, interest and trust distribution payments result in payments from the Issuer (Registry) to the registered holders as at the Record Date for the payment. The role of the CSP is limited to reporting the Cum Entitlement Balances (CEB) for holdings on the CSP sub-register to the Issuer (Registry).

Bonus, Capital Return, Dividend, Interest Payment Lifecycle
Non-Renounceable and Renounceable and Rights Issue

A Renouncable Rights Issue is an offer made to eligible registered holders of a Parent Security. The rights allocated are a transferrable entitlement allowing the take up of new securities upon the payment of application monies. The rights are allocated to eligible holders of the Parent Security as at a specified Record Date, on a pro-rata basis.

Non-renounceable Rights Issues (Entitlement Issues) are similar to Renounceable Rights Issues except that the rights are non-transferrable.

Accelerated Rights Issues, both renounceable and non-renounceable, allow for the acceleration of the Institutional component of the Rights Issue. For further information, refer to Primary Market Facility.

The allotment of nil paid rights to an Account (HIN) of an eligible registered holder is managed by the Issuer (Registry) using the Holding Adjustment Process.

Rights Issue Lifecycle
ReconstructionA Capital Reconstruction is an alteration of the capital structure of a company. This event may also include a repayment of capital to holders.Reconstruction Lifecycle
Schemes of ArrangementA Scheme of Arrangement may take many forms, according to orders made by a court. It is a procedure under Chapter 5 (Part 5.1) of the Corporations Act 2001 (Cth) that allows a company to reconstruct its capital, assets or liabilities with the approval of its shareholders and the Court.

Schemes of Arrangement Overview

Holding Adjustments Overview

Dividend Reinvestment Plan (DRP) and Bonus Share Plan (BSP)

An Issuer operates a Dividend Reinvestment Plan (DRP) that allows an existing eligible shareholder the opportunity to reinvest some or all of their cash dividend as additional shares or fractions of shares (for mFunds only) in the underlying security.

An Issuer operates a Bonus Share Plan (BSP) that allows an existing eligible shareholder to elect to receive additional shares in the underlying security in lieu of a cash dividend.

Bonus, Capital Return, Dividend, Interest Payment Lifecycle

Dividend Reinvestment Plan and Bonus Share Plan Elections Overview

Distribution Advice Notification Overview

Calls

A Call is a payment of unpaid capital on partly paid securities.

Holders of partly paid securities in a No Liability (NL) company do not have a legal obligation to meet a Call Payment, they may choose to make the payment when the call is announced.

Holders of partly paid securities in a Limited Liability Company (LLC) have a legal obligation to meet a call payment. The holder makes a call payment directly to the Issuer (Registry). The CSP does not facilitate the payment process.

Call Payment (Partly Paid Securities) Lifecycle

Diary Adjustments Overview

Batch Settlement Overview 

Warrant RolloverA Warrant Rollover is a procedure which allows a Warrant Issuer to convert units in a Warrant reaching maturity into units of a new Warrant. This is done at the request of an investor, and may incur a fee which is handled outside of the CSP.

Warrant Rollovers follow a lifecycle equivalent to a reconstruction when they roll from one code to the other. Refer to Reconstruction Lifecycle for further information.

Issuer's Agent Transfer Overview

Code Change

A Code Change is the result of a company name change whereby a Security Code and/or ISIN code changes.

Code Change and Class Merger LifecycleCode Change and Class Mergers Overview
Class MergerA Class Merger is a process where an Issuer merges two securities with equal rank. Code Change and Class Merger LifecycleCode Change and Class Mergers Overview
Share Purchase PlanA Share Purchase Plan allows eligible shareholders the ability to apply for up to (typically) $30,000 of shares at either an Application price defined at the time the Offer is made or a price derived in a defined period during the 30 days before either the date of the Offer or the date of the Issue.Share Purchase Plan Lifecycle

Holding Adjustments Overview


Corporate Action Calendar

Day 0Day 1Day 2
Last "cum" quoteEx-period

Ex-date

1st "ex" quote

Create Cum Entitlements.



CSP maintains cum entitlement balances

Transactions may be settled "cum" or "ex"

Most "cum" transactions settle


Record date


CSP sends cum entitlement balance information to the registry during the ex-period until end of day on record dateThe final cum entitlement balance is as at End of Day on Record Date.

Corporate Action Descriptions

NameDescription
Ex-periodThe period from the start of day on the ex-date to end of day on the record date.During the ex-period, the CSP maintains a temporary cum entitlement balance for each holding (in addition to the actual holding balance) and only cum transactions are applied to it. If insufficient cum entitled balance is available to effect a cum designated delivery, the settlement will fail.
Ex-dateThe date on which the ASX changes the basis of quotation for a financial product to signify that trading in that financial product no longer carries the entitlement to a corporate action. 
Record dateThe date determined by the Issuer as the date by which cum designated transfers must be received for the purpose of identifying holders entitled to the benefit of a corporate action.On record date, the issuer uses the cum balance to determine the entitlements of the corporate action.
"Cum" transactionThe Settlement Instruction will settle with the entitlement.A cum basis Settlement Instruction may be overridden with an ex basis of movement override.
"Ex" transactionThe Settlement Instruction will settle without the entitlement.An ex basis Settlement Instruction may be overridden with a cum basis of movement override.
Cum Entitlement Balances

Temporary balances maintained by the CSP for each holding during the ex period for a corporate action. Only cum designated transactions are applied to these balances during the ex period. On record date it is the cum entitlement balances which the Issuer will use as the basis of calculation for the corporate action.

Cum entitlement balances allow the CSP to provide concurrent cum and ex registration of financial products.

Sub-register Movements Approaching Record Date

During the ex period Participants may nominate movements onto the CSP Sub-register as ex or cum; alternatively Participants may opt to use the CSP Default Basis of Movement.

Participants moving financial products onto the CSP Sub-register when a record date is approaching should ensure that the transfer or conversion request is submitted at the earliest opportunity to allow for the Registry’s prescribed turnaround time.


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