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Rights Management of Deposited Stocks

When an issuer sets a record date to determine the shareholders' rights, KSD supports the exercise of rights by beneficial owners. Accordingly, beneficial owners are able to secure their rights, partially if needed, by requesting the exercise of their rights to securities companies which are participants.

Rights management services for deposited stocks

Types of securities deposit

Types of securities deposit : Entitlement Event, Provided Services
Entitlement Event Provided Services
Exercise of voting rights Foreign Investor Proxy voting on behalf of foreign beneficial owners
Issuer Shadow voting to obtain a quorum for a general shareholders' meeting
Distribution of stock dividends, paid-in capital increases and bonus issues Support for subscription, receipt and payment of dividends for beneficial owners
Securing rights in merger or reduction of capital Securing and allocating beneficial owner's rights in merger or reduction of capital
Exercise of appraisal rights Support of the exercise of request for purchase from beneficial owners who notify opposite intention
Untransferred shares and dividends of unclaimed shares Receipt and management of dividend payments and bonus stock accrued by investors who held share certificates in physical form after withdrawing from deposit and did not transfer the title by the record date.

Procedures of exercise of rights in deposited stocks

When a record date is fixed, KSD receives the list of beneficial owners from participants. After confirming the list, KSD notifies the result to the transfer agent and supports the exercise of the beneficial owner's rights.

Benefits of rights management services for deposited stocks

  • Participants and their investor clients whose shares are deposited with KSD do not need to withdraw their stock certificates to exercise their rights to issuers.
  • KSD handles all administrative tasks for the exercise of various rights such as dividend payments, paid-in capital increase, bonus issues, and voting rights, so that participants and investors can receive the from their securities conveniently and promptly through a simple application process.