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Corporate actions

What is a corporate action?

A corporate action is an event, agreed upon by a company’s board of directors and authorised by its shareholders, that causes material change to the company’s securities.

What is the difference between a mandatory and a voluntary corporate action?

A mandatory corporate action is an event initiated by the board of directors of the corporation that affects all shareholders. Participation of shareholders is mandatory for these corporate actions. An example of a mandatory event would be a spin-off, where part of a company is spun-off to create a new company. If you have shares in the original company, you will receive shares of the new company whilst retaining your original investment. A voluntary corporate action is an action where the shareholders elect to participate in the action. A response is required for the corporation to process the action. A tender offer is an example of a voluntary event, where a third party wants to buy a portion of equity in your invested company. You will have the option to sell  all or part of your investment. The event could eventually become a mandatory takeover where the third-party attempts to buy the entire share capital leaving you with no option other than to sell.

What do I need to do If I hold shares in a company which is undergoing a Corporate Action?

You should wait for us to contact you. You will receive a secure mail through your Online Banking explaining the type of corporate action taking place and how it affects you. Certain corporate actions require you to take a decision. If this is the case, we will indicate which options are available to you and confirm the date by which your response must be received. Your instruction on what action to take must be delivered by return secure mail.

Are there certain corporate actions not offered by MeDirect?

Your investment is safely kept in our nominee account, which allows us to give you the lowest execution fees under our scalable business model. However, this means that we have certain restrictions on the corporate action that can be offered.  Below are some corporate actions which are currently not offered:


We strive to ensure a streamlined account opening process, via a structured and clear set of requirements and personalised assistance during the initial communication stages. If you are interested in opening a corporate account with MeDirect, please complete an Account Opening Information Questionnaire and send it to corporate@medirect.com.mt.

For a comprehensive list of documentation required to open a corporate account please contact us by email at corporate@medirect.com.mt or by phone on (+356) 2557 4444.