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Corporate actions

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 tender 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 without the choice to tender or not.

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

You should await contact from us. You will receive a secure mail through your Online Banking explaining the type of Corporate Action and how it affects you. You may be required to make a decision for certain corporate actions. If this is the case then we will indicate which options are available. Your instruction must be delivered by return secure mail. We will also confirm the date by which your response must be received on our corporate action notification.

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: Dividend reinvestments/dividend options on international markets. Where possible we will offer this option for listed securities on the Maltese Stock Exchange. Company meetings and proxy voting for bonds. Where possible we will offer this option for listed securities on the Maltese Stock Exchange. Odd lot offers, e.g. mini tenders. Non official offers, or offers that are not supervised or regulated by an official entity. French loyalty bonus offers. Consent offers. Exceptions may apply depending on the terms of the event. Unregulated/unprotected corporate actions offered by third parties.

How do I inform MeDirect regarding my preferred option?

You can provide your instruction by sending us a return secure mail through your Online Banking. Instructions must be very clear and not be subject to interpretation, clearly stating your election option per investment account.

Can I change my mind after sending you my election?

If you wish to alter an instruction you can contact us on (+356) 2557 4400 or send a replacement secure mail and we will do our best to accommodate your request. If your election has already been acted upon, and forwarded to the company’s registrar, this may not be possible.

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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.