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Corporate Actions, Dividends & Governance

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Corporate Actions, Dividends & Governance

Record Date

The date on which a company checks its register to determine who is entitled to a corporate action.

Test: the shareholder's name appears in the register of members or the depository records at the end of the record date qualitative
Corporate Actions, Dividends & Governance

Related Party Transaction

A transaction between a company and a person or entity connected to it, such as a promoter, director or group company.

Test: the counterparty meets the definition of a related party, requiring disclosure and, above thresholds, audit committee and shareholder approval qualitative
Corporate Actions, Dividends & Governance

Reverse Stock Split

A consolidation of several shares into one, raising the face value and the price proportionally.

New Share Count = Old Count / Consolidation Ratio; Adjusted Price = Old Price x Consolidation Ratio shares
Corporate Actions, Dividends & Governance

Rights Issue

An offer of new shares to existing shareholders in proportion to their holdings, usually at a discount to the market price.

Theoretical Ex-Rights Price = (Existing Shares x Cum-Rights Price + New Shares x Issue Price) / Total Shares After Issue