ISLA Corporate Actions Best Practices

Corporate Actions:

The ISLA Corporate Actions Best Practice Handbook is based on ISLA member consensus from a variety of working groups and ISLA-led initiatives, allowing members and non-members access to general and topic specific guidance pertaining to Corporate Events.

1. Mandatory Corporate Actions: These actions are decided by the company’s board of directors and do not require any input from shareholders. Examples include stock splits, mergers, and cash dividends.

2. Mandatory Corporate Actions with Options: In these events, shareholders are given a choice among several options.  For instance, a company might offer dividends in the form of cash or additional shares.

3. Voluntary Corporate Actions: These require shareholders to actively choose whether or not to participate. Examples include tender offers and rights issues.