¶ Introduction
Corporate events (CE's) are actions initiated by public companies that affect the status of their issued securities, typically approved by the board and shareholders. Common examples include stock splits, dividends, and mergers. CE's are categorized as mandatory (affecting all shareholders), voluntary (shareholders choose to participate), or mandatory with choice (all shareholders are affected but can select from options).
Even when securities are on loan, shareholders retain rights related to corporate events and dividend entitlements, though voting rights are temporarily forfeited. Dividends on loaned securities, known as manufactured or substitute payments, may have tax implications. Platforms like Sharegain provide notifications for corporate events, allowing shareholders to recall their securities if desired.
¶ Navigation
Select the Corporate events register under Registers in the Treasury module.
¶ Daily use
¶ Step 1: Corporate events register
¶ Step 1.1: Create a Corporate event
Each corporate events register line has three FastTabs that can be opened and are filtered:
- Dividend details (Declaration date, Payment date, Amount and Number of shares)
- Split details (Split date, Payment date and Ratio)
- Rights details (Issue date, Exercise date and Ratio)
To create a new line, navigate to:
- Treasury > Registers > Corporate events register
- Click on New
- Enter an Event ID number and Event description
- Select Severity
- Choose a source and select the relevant Source ID
- Add notes
- Owner: Select an owner for the event from the Employee lookup dropdown
- Status: Select the current state of the event:
- Pending
- Approved
- Cancelled
- Type: When creating or managing events on the register, available Type options map to specific Source records and navigation targets:
- Call option: Mapped to the Derivative source. Selecting the Source ID opens the Derivative register
- Put option: Mapped to the Derivative source. Selecting the Source ID opens the Derivative register
- Board meeting: Mapped to the Board meetings source. Selecting the Source ID links to GRC > Meetings > Board meetings (requires GRC and G2T installed)
- Document: Mapped to the Documents source. Selecting the Source ID links to GRC > Governance > Documents > Other documents (requires GRC and G2T installed)
- Enter more information on Dividend details FastTab, such as
- Declaration date
- Record holder date
- Payment date
- Amount
- Currency
- Number of shares and
- Non-cash investment number
¶ Step 1.2: Dividend details FastTab
Data Integration: The Corporate Events Register data entity includes all standard event fields as well as the Owner and Status attributes for imports, exports, and integrations.
¶ Step 2: Link a Non-Cash Investment
- Navigate to Treasury > Registers > Corporate events register
- After creating a new dividend, you can select Update non-cash investment to bring up a drop-down box where you may choose the non-cash investment you wish to associate the dividend with.
- Select the Non-cash investment you want to link it to
- Select the Movement type
- Click OK
After clicking OK, the Dividend line will the automatically be updated in the Income FastTab under Lines of the record that the non-cash investment was linked to
¶ Step 2.1: Adding more information
¶ Step 2.1.1: Split details Fast Tab
- Enter more information on Split details Fast Tab
- Select a Split date and a Payment date
- Insert the desired Ratio
¶ Step 2.1.2: Rights details Fast Tab
- Enter more information on Rights details Fast Tab
- Select an Issue date and an Exercise date
- Insert the desired Ratio
