Securities administration - Australia
Income collection
| Market Record date | Ex-date | Basis for entitlement | Standard interest calculation rule | |
| Debt securities | Usually 8 calendar days before payment date | Usually 1 business day before record date | Settled position on record date | Actual/365 or Actual/Actual |
| Equities | Up to 2 months before payment date | 1 business day before record date | Cum-entitlement balance held on record date | Not applicable |
Note: Dividends are usually paid between April and June and between September and November.
Corporate actions
Most common corporate actions
Besides regular income payments, there are three main corporate actions affecting Australian equities: bonus issues, rights issues and dividend re-investment plans. Other recurring, but less frequent events include capital reconstructions and corporate mergers.
For ASX-listed equities, the entitlement to participate in a corporate action is based on end-of-day positions determined on the record date (equal to books close date) in the books of both CHESS and of the respective registrar. CHESS also takes account of outstanding matched settlement obligations on the record date and proceeds to automatically compensate entitlements between the respective counterparties.
Besides regular income payments, debt securities may be affected by early or by partial redemptions. The entitlement to participate in an early or partial redemption is based on end-of-day positions determined on the record date (equal to books close date) in the books of Austraclear, CHESS and/or the respective registrar. In the case of ASX-listed debt securities, CHESS also takes account of outstanding matched settlement obligations on the record date and proceeds to automatically compensate entitlements between the respective counterparties. Delays between the record date and payment date vary by corporate action category.
Organisation of AGM/EGMs
Australian companies are required by law to hold their Annual General Meetings (AGMs) within five months of the end of their fiscal year while Extraordinary General Meetings (EGMs) may be called at any time. Most companies close their books on 30 June to coincide with the Australian Commonwealth Government's fiscal year end, and most AGMs take place between September and November.
Meeting notices containing ordinary resolutions and the related proxy material must be sent to registered shareholders at least 14 days prior to the AGM or EGM; if the meeting is to decide on special resolutions, the notice must be mailed at least 28 days in advance of the meeting. In practice, most major companies release notices well in advance of the applicable deadline. It is sufficient that meeting notices be sent to the registered shareholders by regular mail. ASX-listed companies are additionally required to send their meeting notifications to the ASX.
Shares in ASX-listed companies are not blocked in CHESS. Unlisted companies may decide to suspend the registration of transfers for a specific period preceding their AGM or EGM.
While shareholders must in principle be represented in person in order to vote, most companies routinely allow shareholders to appoint the chairman of the AGM or EGM, or another person as proxy. Resolutions are passed by a simple show of hands unless a poll is required. Proxies do not have the right to participate in resolutions that are passed by a simple show of hands. However, proxies are entitled to demand a poll and to vote if a poll is called.
Websites
ASX Listing Rules, Guidance Notes and Waivers: (Rules) (Appendices 6A and 7A)