Meetings of shareholder and bondholder are corporate events at which security holders make key company decisions.
They can be ordinary, extraordinary, or originated by a group of investors. Each meeting affects the company's management and the terms of its securities trading.
Below are the main types of meetings and related corporate actions.
1. BMET - Meeting of Bondholders (Corporate Action: Meeting of Bondholders).
This is a formal event at which bondholders discuss and make decisions on the terms of the issue, debt servicing, and other important matters.
The meeting may be regular or extraordinary and originated by the issuer or a group of investors. The decisions made may affect the payment structure, terms, loan parameters, and other conditions.
2. MEET - Annual General Meeting of Shareholders (Corporate Action: General Meeting of Shareholders - Annual).
The AGM is the key corporate event of the year, where shareholders consider the company's performance and make decisions affecting its future development.
The meeting is held annually (usually by June 30) within the time established by the company's Articles of Association.
The agenda may include the following items:
- Approval of the annual financial statements;
- Profit distribution, including dividend decisions;
- Election of the Board of Directors and the Audit Committee;
- Approval of the Auditor;
- Other matters stipulated by the Articles of Association and laws.
Decisions are made by voting - in person, remotely, or by proxy. The results are recorded in minutes.
3. OMET - Ordinary General Meeting (Corporate Action: Ordinary General Meeting of Shareholders).
This is a scheduled meeting of shareholders held in accordance with the company's Articled of Association and laws. It typically takes place once a year and covers standard business-related matters.
4. XMET - Extraordinary General Meeting (Corporate Action: General Meeting of Shareholders - Extraordinary).
An extraordinary meeting is held outside the schedule when important matters must be addressed promptly. It may be originated by the Board of Directors, major shareholders, or to comply with legal requirements.
These meetings are used to consider urgent matters, such as changes to the Articles of Association, corporate restructuring, or other significant events.
5. DVOP - Dividend Option (Corporate Action: Dividends - Payment Method Choice).
A company may offer shareholders a choice of dividend payment method: cash or shares. Investors independently select the appropriate option within a specified time.
This allows for flexible strategy management - receiving income immediately or increasing their stake in the company.
6. DSCL - Disclosure (Corporate Action: Disclosure to Issuer).
This is a corporate action that requires security holders to provide the issuer with information about themselves, including their name, location, number of securities, and outstanding balances.
Disclosure may be required for register maintenance, legal compliance, or preparation for meetings.
Depending on the situation, providing information may be mandatory or voluntary.
Essential Details to Know
- Meetings are a corporate governance tool that allows investors to influence key company decisions.
- Most meetings are announced in advance; in these cases, you receive notice with the agenda, timelines, and participation requirements.
- Voluntary actions leave the decision up to the investor, while mandatory actions require compliance with established requirements.
- Participation in meetings helps you better understand the company's strategy and protect your interests as a shareholder or bondholder.
Important!
In this section, the examples provided by Freedom Finance PLC (hereinafter referred to as the Company) are hypothetical, illustrative, and intended to provide a general explanation of the relevant provisions. These examples are not intended to apply to specific circumstances, do not take into account the individual circumstances and conditions of the Client, and should not be relied upon as the basis for making any investment or other decisions.
The Company assumes no liability for the accuracy, completeness, or interpretation of the information provided, or for any losses the Client may incur as a result of its use. The Company also assumes no liability for any consequences of investment decisions made by the Client based on this information. More detailed risk information is available in Annex 4 of the Brokerage Services Regulations, which is posted on the Company's official website.