Mclowd provides support for recording various types of Corporate Actions, as documented below. Click the heading for instructions to record transactions.
You must enter corporate actions in the order that the Posting Dates occurred. If you enter them out of order, your assets will have incorrect volumes and/or values.
Support for adding corporate actions in any order will be in a future release.
Return of Capital:
A return from an investment that is not considered income. The return of capital is when some or all of the money an investor has in an investment is paid back to them, thus decreasing the value of the investment.
A corporate action in which a company combines or divides its existing shares. Although the number of shares outstanding decreases or increases by a specific multiple, the total dollar value of the shares remains the same. A consolidation may also be known as a reverse split, and a split may also be known as a subdivision.
An offer of free additional shares to existing shareholders. New shares are issued to shareholders in proportion to their holdings. A company may decide to distribute additional shares as an alternative to increasing the dividend payout.
Scrip for Scrip Rollover
If a company in which you owned shares was taken over and you received new shares in the takeover company, you may be entitled to scrip for scrip rollover. You may also be eligible for this rollover if you exchange a unit or other interest in a fixed trust for a similar interest in another fixed trust.
In a Demerger, a company in which you own shares hives off an entity and a new entity is formed in which shareholders receive the shares of the demerged company. Generally this would result in an allotment of shares but no change in the cost base. On a case to case basis, the ATO issues rulings that determine the nature of the impact on holdings.
NOTE: Currently, only the Demerger of South32 by BHP Billiton Limited (ATO Ruling CR 2015/40) is supported by Mclowd. Please contact Mclowd support team if you need assistance to record demergers of other entities.