Corporate Actions

Dividends

In the event of a listed entity declaring a dividend, the CDS shall furnish the Company Secretary/Registrar of the listed entity a list of Account Holders with their respective holdings with regard to that security as at the date of entitlement.

Cash Dividend

In the event of a cash dividend, the listed company shall dispatch the dividend payments directly to the respective account holders.

Scrip Dividend

In the event of a scrip dividend, the allotted shares shall be deposited directly to the respective client accounts.


Rights Issues

In the event of a listed entity issuing Rights, the CDS will furnish the respective Company Secretary of the listed entity a list of shareholders entitled to the right as at the date of the EGM. (Day prior to the XR date)

Once the shareholders receive the allotment letters the duly completed forms can be forwarded through the participants to the CDS to be deposited in shareholders’ respective CDS accounts. The account holders may trade on the deposited rights.

The depositing & trading is allowed from the trade commencement date of the “R” shares until the renunciation date.

On the renunciation date, the CDS will send to each participant a list of account holders who hold rights in the CDS through them with the respective rights holdings. The participants should forward the payments together with the details of the account holders who will not be subscribing for the said right. Such rights will be withdrawn from the CDS accounts.

Any rights duly subscribed by the account holders in the CDS, shall be converted to shares as per the instructions given by the Company Secretary of the listed entity.


Share Repurchase

A share repurchase occurs when a company requires shareholders to tender their shares to be repurchased by the company.

Once the company secretary forward the prospectus for the repurchase the CDS shall open the reserve account for the repurchase.

The CDS will accept the duly completed repurchase offer acceptance documents from shareholders through participants during the stipulated offer period.

As per the accepted offer documents the shares will be transferred to the reserve account from the share holders' accounts.


Mandatory & Voluntary Offer

Mandatory Offer

The obligation to launch a mandatory offer applies when a third party, alone or together with a related party, becomes the owner of voting shares which is equivalent or more than 30% of the shares of a listed company. By a mandatory offer the offeror bestows the opportunity to other shareholders of the company to sell their shares on a value predetermined by the SEC. Mandatory offers facilitate the other shareholder to sell the shares in the event of a takeover.

Voluntary Offer

A voluntary offer can be launched at any time by any shareholder after obtaining SEC approval.


De-Listing

When a listed company needs to de-list itself from the CSE, company shall obtain approval from the SEC to delist the shares. The shareholders of the company will receive an offer to sell the shares which will be de-listed.

Once the request letter from the Company Secretary is received by the CDS, a reserve account will be opened.

From the day which the offer is opened, the shareholders who accept the offer shall send duly completed offer acceptance documents to the CDS through the participants. As per the shareholders' instructions the relevant shares will be transferred from the shareholder accounts to the Reserve accounts.

At the end of the offer period, after the company has paid all the shareholders who accepted the offer, the Company Secretary shall take the approval from the SEC for the final transfer.

Once the company submits to the CDS the relevant transfer forms together with the SEC approval, shares will be transferred from the Reserve account to the Offeror's account.

After completion of these steps the CDS will issue a list of shareholders as at the withdrawal date to the Company Secretary. The company secretary, based on the provided shareholder details, will issue share certificates.


Takeovers & Mergers

Transfers pertaining to Take-overs, Mergers:

  • Form of acceptance, letter of authorization to the CDS and application for additional shares (applicable only for repurchase of shares) should be forwarded to the CDS through the respective Participant. The account holder should duly complete all the relevant sections in the offer document. An authorized signatory of the Participant should sign in the relevant section of the offer document on behalf of the Participant.

  • The Participant must submit the CDS Authorization Form to CDS on or before the date stipulated in the offer document.

Note:
After transferring the relevant shares to the reserve account the CDS will forward all the offer documents to the Registrars to the offer.