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Corporate actions
How to give your instructions
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If you want to give your corporate action instructions there are two options available to you:
- Provide your instruction online or via the mobile banking app by logging on to your account and selecting ‘corporate actions’ in the right hand navigation then ‘notifications’ and choosing the relevant account.
- Send your instruction by post to:
Lloyds Bank Share Dealing
Lovell Park Road
Leeds
LS1 1NS
- Provide your instruction online or via the mobile banking app by logging on to your account and selecting ‘corporate actions’ in the right hand navigation then ‘notifications’ and choosing the relevant account.
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If you have missed the deadline date we can no longer take your instructions.
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If you wish to alter an instruction you can do this online up to the advice date.
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We won’t inform you if any of your current or previous investments are involved in legal cases (including class action law suits).
How to get company information
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You can request a copy of an annual/interim report from the company's registrar. Alternatively, you can use the Investor Meet Company service.
Please note, Investor Meet Company is a third party service so we recommend using a strong, and different password to your other online services.
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If you believe you should have received information on a corporate action you can check this on the corporate actions notifications page, our web chat service or by calling us on 0345 606 0560.
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This can vary, but normally we will tell you about a corporate action once the company has sent out the official documentation to shareholders. Lloyds Bank Share Dealing won’t contact customers as a result of press or market speculation.
On some occasions when a corporate action doesn't affect your holding, and no action is required by shareholders, no prior notification will be sent and only a confirmation will be sent after the event.
What happens after you give your instruction
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The cash will be paid into the nominated account.
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Yes. This can be done online or via the app and the cash can be reinvested from the date it is credited to your account.
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Yes. This can be done online or via the app once the cash is credited to your account you can withdraw the amount to your Nominated Bank Account.
Main types of corporate actions
1. Rights issues
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When a rights issue takes place, shareholders have the option to purchase additional shares at a discounted price.
If you choose to action these rights then you'll be allocated new shares on receipt of your payment and completion of the event. These shares will then become ordinary shares and will be tradeable at the current market price.
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By choosing not to action these rights you will not lose any shares, rights are offered by a company at a discounted price in addition to your existing shares.
Please note: While you won’t lose any existing shares your share holding will become more diluted as there will be more shares on a stock market.
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When a company announces a rights issue, holders of the stock will be issued ‘nil paid rights’ which each represent a ‘right’ to buy a new share.
As these ‘nil paid rights’ are tradable on the stock market, they are allocated a value using the book cost of your total share holding.
When choosing to take up your ‘rights’ and purchase additional shares, the new shares will be given a book cost which includes both the discounted offer price you paid and the stock market value of the nil paid rights.
2. Stock splits
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A company may decide to split its stock into new shares to increase its liquidity on the market, this usually happens when the share price is very high and makes it harder for smaller investors to buy into the company. Companies will usually use a 2-for-1 or 3-for-1 ratio which means for every share you had before you would receive 2 or 3 shares.
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If a company wants to attract new shareholders but feels that its share price is too high they can arrange a stock split to lower the stock’s price, making shares more affordable.
3. Mergers
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A merger is when two or more companies believe they can succeed in an even bigger market if they join forces.
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As with all corporate actions, an event could either push share prices higher or cause a fall.
4. Spin-off
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A spin-off is when a corporation creates a separate firm from part of its existing business.
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As with all corporate actions, a spin-off could either push share prices higher or cause a fall. A spin off would usually result in existing holders receiving shares in the new company based on their existing holding.
Important legal information
The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Registered in England and Wales no. 3195646. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.