Preface Introduction Quick Guide to Locating Information on Specific Corporate Actions 1. Defining Corporate Actions The characteristics of a share and its issuer - definitions of corporate actions - how the action is decided upon: articles of association, AGMs & EGMs - the board of directors - chief financial officers and treasury departments - legislation underpinning the system. 2. The Main Corporate Actions How many types of corporate action are there? - definitions/descriptions of main types of corporate actions (dividends, scrip dividends, scrip issues, return of capital, consolidation, rights issues, takeover bids, agreed takeovers, de-mergers) - benefits or otherwise for shareholders and share prices. 3. The Corporate Actions Process From the investor's point of view - announcement dates - record dates - ex-dates - effective dates - steps along the way to a takeover - corporate actions information from the share prices pages - typical timetables for returns of capital and rights issues. 4. The Corporate Actions Industry What goes on behind the scenes - chart of the corporate action flow of information - the connections between the main players - the legislative framework. 5. How Well is the Corporate Actions System Working? The volume of actions and cost of corporate actions administration; staff, data and investment - risk and the cost of mistakes in processing - where do the problems arise? - who loses out when mistakes are made? 6. Corporate Actions; Technology and the Future The importance of automation in corporate actions - ISO 15022 and SWIFT - Straight Through Processing (STP) - ISO 20022 - solution providers in corporate actions automation - how likely is it that full standardisation will ever be achieved? 7. Corporate Actions Wreaking Change on Shares Corporate actions, a winding path - a concrete example - how much does the investor need to know? - how important is corporate action information (or the lack of it) as a factor in selecting a sharedealing/investment service? - different routes for information to reach the investor. 8. Shareholder Voting How important is it to vote? - voting by investment funds - differences between the UK & the USA - the Myners Report - the state of affairs for the retail/small investor - voting terminology. 9. Corporate Actions and Taxation Stamp taxes and withholding taxes - illustrations of how different corporate actions can affect income tax and CGT liabilities with some specific shares as examples - treatment of corporate actions for ISA holders - investment funds and corporate actions. 10. Corporate Actions in Different Jurisdictions National differences in corporate actions - Japanese dividends - depository receipts - restrictions on foreign share ownership - different rules for shareholder general meetings - bearer certificates - the removal of corporate actions barriers in the EU? 11. Corporate Actions for Debt Securities The volume of corporate actions relating to bonds - fundamental difference from equity corporate actions - interest and redemption, the basic corporate actions - optional redemption, callable and puttable bonds - variable coupon bonds and floating rate notes - conversions and warrants. 12. Corporate Action Effects Across the Investing Spectrum How corporate actions affect the calculation of stock exchange indices - how charts handle corporate actions - the effects of corporate actions on futures, options, CFDs and ETFs - corporate actions for CDOs - corporate actions and securities lending - hedge funds and corporate actions - corporate actions and the pension fund trustee - corporate actions and crime. 13. Conclusion Glossary Appendices - List of Central Securities Depositories - Capital Gains Tax Example - BIFFA/Severn Trent - Non-rights Issues of Shares Suggested Reading Index
