When a company carries out corporate actions, it is the responsibility of the company’s account operator to ensure that the action in question is implemented in VPS. Certain types of corporate action, such as share issues, distribution sales and acquisitions can also be carried out by account operators other than the account operator the company uses for its own VPS accounts.
VPS provides services to assist account operators to ensure that corporate actions are carried out reliably and promptly. With its extensive expertise and unique applications, VPS provides a complete service including both transfers of shares/bonds and settlement for transfers. VPS Company Services gives the company a full overview of its own corporate actions.
Shareholders benefit from the company using VPS to carry out its corporate actions in a variety of ways, including:
- Web-based system to subscribe for shares
- Accurate information in the form of notifications (account movements) and investor messages
- Simplified access to accurate information for calculating gains/losses on sales of shares
Examples of corporate actions include:
- Distributing dividend payments
- Returning capital to shareholders / distributions from share premium reserve
- Share issues
VPS has developed specialised applications for a number of corporate actions in respect of shares and equity certificates. Click here for more information on the services VPS offers for corporate actions
In the case of fixed income securities, VPS offers applications for corporate actions including the following:
- Interest payments
- Managing instalment and other payments, including payments arising from American puts, American calls, European puts, European calls and Bermuda puts
- PIK (Payment In Kind)