How do I vote at a company’s AGM?
Australian-listed companies each conduct an Annual General Meeting (AGM) where shareholders can participate in decisions such as electing new directors to the board and other resolutions relating to the company’s business.
If you would like your vote lodged at a company’s AGM, you will need to reach out to our team via chat or send us an email at hello@superhero.com.au at least 4 business days before the meeting commences.
What is a Share Purchase Plan (SPP) and how do I participate?
A Share Purchase Plan (SPP) is a form of capital raising by a company that offers existing shareholders the opportunity to apply for new shares.
The intention behind an SPP is to allow shareholders to participate in a capital raise by the company, typically at a discount to the last traded price.
To be eligible to participate in an SPP, you must own shares in the company on the record date (the date set by the company).
Participation is optional. Eligible shareholders have the opportunity to buy up to a maximum of $30,000.
If you are eligible and wish to participate in an SPP, you must:
1. Respond to the invitation email Superhero sends to your registered Superhero email on the open date of the SPP. If you did not receive the email, check your spam folder, or contact us through chat. (If you have unsubscribed from our emails, you will not receive the invitation.)
2. Click on the invitation link and complete the details before the closing date stipulated in the email. Please note the deadline can change if a company closes their SPP early. We will endeavour to notify clients if a SPP closes early but this may not always be possible due to the short deadlines offered by some companies on occasion.
3. Your application will only proceed if you have sufficient funds in your Superhero Wallet at the time of your submission. We will restrict the funds for the SPP from your Superhero Wallet. We strongly encourage having the funds available when you subscribe.
4. On the share issue date, your funds will be withdrawn from your Superhero Wallet and the SPP shares will be allocated to your Superhero Account.
In some cases, the SPP will be scaled back by the company and you will not receive your full request. In this case, the balance of your funds will be refunded by the company to your Superhero Wallet.
Registry processing times may affect the actual issue date of shares.
What is a Rights Issue and how do I participate?
A rights issue is a way companies raise capital from existing shareholders on a pro-rata calculation of your existing shareholding.
Rights issues are either renounceable or non-renounceable. Renounceable rights mean you can sell your existing rights or buy additional rights on the market. Non-renounceable rights are not transferable and cannot be bought or sold on the market. Companies may include a shortfall or oversubscription facility as part of their rights issue offer, meaning you can apply for additional shares on top of what you are entitled to.
To be eligible to participate in a rights issue, you must own shares in the company on the record date (the date set by the company).
1. If you are eligible and wish to participate in a rights issue, you must: Respond to the invitation email Superhero sends to your registered Superhero email on the open date of the rights issue. If you did not receive the email, check your spam folder, or contact us through chat. (If you have unsubscribed from our emails, you will not receive the invitation.)
2. Click on the invitation link and complete the details before the closing date stipulated in the email. Please note the deadline can change if a company closes their rights issue early. We will endeavour to notify clients if a rights issue closes early but this may not always be the case due to the short notice given by some companies.
3. Your application will only proceed if you have sufficient funds in your Superhero Wallet on the closing date. We will restrict the funds for the rights issue from your Superhero Wallet on the closing date. We strongly encourage having the funds available when you subscribe.
4. On the share issue date, your funds will be withdrawn from your Superhero Wallet and the rights issue shares will be allocated to your Superhero Account.
Registry processing times may affect the actual issue date of shares.
What is a Share Consolidation and how does this affect me?
A share consolidation reduces the number of shares a company has on issue. This causes the share price to increase proportionally, meaning that the percentage ownership and value of your investment remains the same.
Example: You own 100 ABC shares and they are valued at $1 each for a total value of $100. A 10:1 share consolidation means for every 10 shares you own you will now own 1. In addition, the value of each share will increase from $1 to $10 each.
Under a share consolidation the value of your investment will remain the same. As illustrated above, your investment value is $100 but you will own 10 shares valued at $10 each following the consolidation.
When a share consolidation occurs, the Activity tab in your Superhero Account will show:
Your ABC shares were consolidated at a 10:1 ratio.
What is a Share Split and how does this affect me?
A share split is when a company divides its existing shares into multiple shares, thus increasing the number of shares a company has on issue. This is usually done when the share price is relatively high. The value of the company does not change, but more shares become available, and this results in greater liquidity.
Example: You own 100 XYZ shares and they are valued at $1 each for a total value of $100. A 1:10 share split means every 1 share you own you will now own 10. In addition, the value of each share will decrease from $1 to $0.1 each.
Under a share split the value of your investment will remain the same. As illustrated above, your investment value is $100 but you will own 1,000 shares valued at $0.10 each.
When a share split occurs, the Activity tab in your Superhero Account will show:
Your ABC shares were consolidated at a 1:10 ratio.
What is a Scheme of Arrangement and how does this affect me?
A scheme of arrangement allows a company to reconstruct its capital, assets or liabilities with the approval of its shareholders and the Court. The most common use of a scheme is to effect the same outcome as a takeover.
Under the arrangement, the bidder and target must first reach agreement to propose the scheme to target shareholders, following which approvals are sought from both target shareholders and the Court.
If you are eligible and wish to participate in a scheme of arrangement, you must:
1. Respond to the invitation email Superhero sends to your registered Superhero email once the scheme has been announced. If you did not receive the email, check your spam folder, or contact us through chat. (If you have unsubscribed from our emails, you will not receive the invitation.)
2. Click on the invitation link and lodge your vote before the closing date stipulated in the email.
3. Superhero will lodge your vote with the company’s share registry after the closing date.
If the scheme is approved, your existing shares will be exchanged for cash and/or bidder’s shares as set out in the terms of the scheme. This will show in the Activity tab in your Superhero Account as:
– A sell transaction in the security taken over in the scheme, with the sale price equivalent to the cash consideration per share outlined in the offer.
– If you receive the Bidder’s shares as part of the scheme, a buy transaction will reflect you acquiring the Bidder’s shares.
If the scheme is not approved, no changes will be made to your Superhero Account.
What is a takeover, and how does this affect me?
A takeover is when one company (Bidder) makes a bid to take control of another company (Target). The bidder will typically offer shareholders cash and/or shares to buy out the shareholding in the target.
If you are a shareholder of the Target, you will have the option to vote if you wish to accept or reject the bidder’s offer.
If you are eligible and wish to participate in a takeover offer, you must:
1. Respond to the invitation email Superhero sends to your registered Superhero email once the takeover has been announced. If you did not receive the email, check your spam folder, or contact us through chat. (If you have unsubscribed from our emails, you will not receive the invitation.)
2. Click on the invitation link and lodge your vote before the closing date stipulated in the email.
3. Superhero will lodge your vote with the company’s share registry once the closing date has ended.
Please note, you will be unable to sell your shares if you have accepted the takeover offer.
If the takeover is successful, your shares will be exchanged for cash and/or Bidder’s shares regardless of how you voted. This will show in the Activity tab in your Superhero Account as:
– A sell transaction on your holdings on Superhero, with the sale price being the cash consideration per share outlined in the takeover.
– If the takeover involved receiving Bidder’s shares, you will see a buy transaction showing you were allocated Bidder’s shares.
If the takeover did not occur, nothing will happen to your holdings.
What will happen if a security that I own delists from the ASX?
If your security has delisted from the ASX, you can no longer trade the security on the market.
After the security delists (and in some cases prior to the security delisting) Superhero will transfer your shares out of your Superhero account and into an issuer holding under your name, managed by the share registry.
How do I change my election in a voluntary corporate action if I have already submitted a response?
If you wish to update your response, simply click on the link in the invitational email and submit a new application. Your latest application will overwrite any previous response you have made.
What is a company option and how do I exercise them?
An option is a contract that gives you the right but not the obligation to buy or sell a security before the expiration date, at a predetermined price (exercise price).
Company options are call options issued to shareholders by the company. Option holders have the right but not the obligation to take up (exercise) the options and purchase additional shares in the company. Some company options may be listed on the ASX meaning investors can buy additional options or sell their existing options on the market. However, an option that is not listed on a public stock exchange cannot be traded.
Another feature of company options is that the terms and conditions of the options (i.e. exercise price and expiry date) are determined solely by the issuing company and disclosed in the prospectus documentation. Hence, company options are non-standardised contracts and investors, as with any investment, investors should always read the full prospectus document to ensure all terms are understood.
Exercising your options
When exercising your company options, you agree to purchase the underlying security at the predetermined exercise price, regardless of the market price of the underlying security at the time you exercise your option.
If you wish to exercise your options, you must submit a request up to 3 business days before the option expiry date.
If you purchased options on-market and wish to exercise them, the options must first settle in your account (ASX T+2 settlement rule). This means you must purchase the options at least 5 business days before the option expiry date to be eligible to exercise them in your Superhero account.
Your application will only proceed if you have sufficient funds in your Superhero Wallet at the time you submit an exercise request.
If you have any further queries or wish to exercise your options through Superhero, please contact us on chat or email us at hello@superhero.com.au.
