Planning a Corporate Action? Here’s What You Need to Know

Due to the complexity of the tasks associated with a corporate action, and the importance of meeting strict requirement sand timelines, relying on a team with extensive experience and adaptive skills is a must – whatever the scope or size of the project. Your agent should offer experience gathered through years of managing corporate events and have a proven record of efficiency.

Any communications, including a Letter of Transmittal (LT), must be easy to understand and provide clear instructions to your shareholders in plain English. Your agent should be able to provide materials and standard LTs that the average reader can easily understand, providing them with the information they need to take appropriate action.

As the securities industry moves further towards total de-materialization, new avenues of communication with affected populations involved in a corporate action or related event are becoming more relevant.

Providing a web interface for holders to respond to an event allows for seamless access to terms and requirements, a facility to enter instructions as well as a higher level of accuracy by recording all responses in an automated and systemic digital environment.

​​​Websites should be customizable to each transaction and include all relevant documents posted for easy access to holders. The layout of site should be friendly and familiar to the shareholder with the aim of promoting a higher rate of participation. The site should also provide regular reporting to your team of all participation and be easy to update in case the event materially changes.

In voluntary deals and related corporate actions, which require shareholders to respond within a limited time, the involvement of an information agent is essential to strive for a successful outcome. Your information agent will initiate and maintain communications with your corporate action agent to monitor the progress of the offer and provide outreach to holders, banks and brokers to confirm awareness of the offer, the process to respond including any deadlines and answer in a clear and concise manner any questions holders may have in order to make a sound decision relative to participation in the offer. Georgeson, our sister company, is an information agent, and we often partner to provide these services jointly and securely.

Insights into local and international markets, as well as the ability to execute rapid cross-border transactions, are critical components of a successful corporate action that has global implications. Your agent should have both international experiences and local offices in the applicable jurisdiction to ensure the best possible input into the conduct of your event. In addition, your agent should have options to expedite FX payments across currencies and via multiple payment facilities such as check, wire and electronic transfer.