Corporate Actions
Corporate actions are events initiated by a company that affect its shareholders or bondholders. These may include dividends, stock splits, rights issues, mergers, or takeover offers. Such events can require shareholders to make decisions that may influence their investment positions.
You can manage these events through the Corporate Action Manager in the Client Portal. Examples include submitting dividend choices, participating in takeover offers, or exercising subscription rights. To ensure your instructions are processed correctly, make sure to submit your elections before the specified deadline. Below, you will find information on how to participate in corporate actions.
Login
- Open your browser and visit the Client Portal website
- Enter your username and your password
- Authenticate yourself via two-factor authentication
Navigate to Corporate Action Manager
Click the question mark in the white circle in the top right corner of the page, then select Support Center. On the following page, choose Corporate Action Manager.
Select the upcoming action
On the Corporate Action Manager page, you can navigate between the following tabs:
- Upcoming Actions: View upcoming corporate actions.
- Choice Actions: Explore available elective actions.
- Mandatory Actions: Review mandatory corporate actions affecting your holdings.
- Conversions: Manage share conversions.
- Warrant Exercises: Execute warrant rights.
- Past Actions: Access a record of past corporate actions.
- Proxy Votes: Exercise voting rights in corporate decisions.
Corporate action information
To view details of a specific corporate action, click on the corresponding row. In this window, you will find all the information regarding the Corporate Action, including the deadline, conditions, various dates, and the account for which you want to make the choice.
For most corporate events you will be asked to allocate the number of shares or rights to a specific choice.
Let’s look at a dividend choice as an example. By default, the choice for cash dividend is selected. Additionally, in this case, you can allocate an amount of rights. If you want to receive cash dividend, enter the number of rights in the field of the first row. If you prefer stock dividend, enter the number of rights in the second row.
Confirm your choice
To finalize your selection, check the Terms and Agreement box in the lower-left corner of the pop-up window, then click Save in the lower-right corner.
A Confirmation Needed pop-up will appear. To confirm your choice, select Yes.
After you submit a voluntary corporate action election, a confirmation is typically sent to the Message Center shortly to verify acceptance of your selection. If you do not receive a confirmation, please contact our customer service team, as elections without confirmation may not be processed.
To access the Message Center in the Client Portal, click the question mark in the white circle in the top right corner and select Secure Message Center.
FAQ
What is the deadline for submitting Corporate Actions?
The deadline for submitting Corporate Actions is generally set two days before the official deadline provided by the company initiating the event. This allows time to process and submit the necessary instructions on behalf of clients.
Specific deadlines may vary depending on the nature of the action and other factors.
Where do I check my previous Corporate Actions?
If you wish to track received dividends, changes in dividend accruals, and corporate actions, you can access all this information in your account statement available through the Client Portal. For step-by-step instructions on how to view your statement, please refer to this page, which also provides detailed explanations of the various sections within the statement.
To stay informed about corporate actions, we recommend using either the Corporate Action Manager tool in the Client Portal or the Corporate Action section within the Secure Message Center. Both of these options can be accessed by clicking on the Help? icon located in the top right corner of the page and selecting Support Center. For reliable and mandatory information, you can visit the company’s Investor Relations page.
Where do I find the Subscription Ratio of my Rights?
The offering ratio indicates how many rights are needed to obtain new shares. For example, a ratio of 10:1 means 10 Subscription Rights allow you to acquire 1 new share. The number and ratio of the rights will be listed in the Corporate Actions section of your account statement.
I received Subscription Rights, do I need to take any action?
Submitting Subscription Rights to purchase new shares is generally voluntary. In some cases, Subscription Rights may lose their value if they are not exercised before expiry. Many rights are tradable before their expiration date.
If you take no action, the rights may lapse without value. The expiration date and (if applicable) proceeds are displayed in the Corporate Actions section of your account statement.
What are Corporate Actions?
Corporate actions are events initiated by a publicly traded company that can change the company’s structure or affect its shareholders. These actions are typically authorized by the board of directors and may require shareholder approval in certain cases.
Can I choose between a Cash- or Stock Dividend?
The dividend policy is determined by the issuing company. Some companies allow you to choose between cash and stock dividends. Please note that, for legal or technical reasons, participation in certain events (e.g., capital increases) may be restricted.
What implications do Corporate Actions have for me?
Such actions can have several implications for investors:
- Changes in ownership or voting rights: Events may alter a company’s ownership structure, affecting voting rights.
- Impact on share price: Depending on the event, the share price may be affected (e.g., stock splits and bonus issues often lead to a lower price per share while the overall position value is adjusted accordingly).
- Opportunities and risks: Corporate actions can present opportunities (e.g., acquiring additional shares), but also carry risks. Assess the potential impact before making decisions.
How can I perform a Proxy Vote?
You will typically receive emails titled Annual Meeting Notice from our partner IB for proxy voting (check your spam folder if needed).
If you cannot find the email, you can access open proxy votes via the Client Portal:
- Log in to the Client Portal and click the question mark in the white circle in the top right corner of the page and select Support Center from the dropdown menu.
- In the Support Center, select Corporate Action Manager.
- On the Corporate Action Manager page, click on the Proxy Vote tab on the far right and then click on the Proxy Vote button.
- You will be directed to a website where you can view upcoming actions and decisions.
On this website, you will find the following categories:
- Upcoming Actions: Details of upcoming corporate actions or meeting announcements for which you can vote, along with the voting cut-off date.
- Decisions: Submit your voting instructions here by pressing Vote. Review the articles and indicate your vote separately per article with For, Against or Abstain. Once you’ve made your choices, scroll to the bottom of the page and click Confirm Vote. Review your selected votes on the following page, then click Submit Vote at the bottom to complete the voting process.
- Delivery Preferences: Indicate or change your preferred method of communications regarding corporate actions here.
- Communications: Access previous communications regarding corporate actions delivered to you.
After voting, you should receive a confirmation email from IB acknowledging your participation.
How can I participate in an Annual General Meeting (AGM)?
To attend a general meeting in person, you may request the required documents via the emails that are automatically sent to you. These emails are dispatched shortly after the record date from one of the following addresses. To ensure successful delivery, please add these to your address book:
Each email contains a link and a control number. Click the link to open the voting page. First, select I want to attend the meeting. Then cast your vote and confirm your selection by clicking the button at the bottom of the page.
As a final step, under How would you like to obtain your attendance card?, please select By Email.
Even though a physical attendance card is no longer issued in most cases, this selection is still required to complete your registration.
Please note:
Some issuers may still require additional documentation, such as a completed attendance form or a formal Record Date Confirmation. These requirements are usually published in the Investor Relations section of the company’s website.
If such documentation is explicitly required, please contact the LYNX Service Team and provide the issuer’s instructions. We will submit the request for confirmation through Interactive Brokers. Please allow up to 5 business days for processing.
Alternatively, if you do not receive the email, you can access the invitation via the Client Portal:
- Log in to your Client Portal.
- Click the question mark (?) icon in the top-right corner.
- Select Support Center, then open the Corporate Action Manager.
- Navigate to the Proxy Vote tab and click the green Proxy Vote button.
- Under the Communications section, you will find the relevant emails.
- Click the Email button to open the voting page, then select “I would like to attend the meeting”.